Russian property interest increasing due to currency exchange rate

The currency exchange rate on sterling has increased Russian interest in London property, it has been claimed.

Estate agent Knight Frank conducted a study which found that amount of Russian puchases in the England capital increased by 112 per cent during April and May.

Liam Bailey, head of residential research at Knight Frank, said that this was partly due to the currency exchange rate.

Mr Bailey said: "The London residential market is continuing to lead the wider UK market.

"The weak pound is having the effect of pulling in demand from overseas buyers, who view London as offering good value, with prices still 34 per cent lower in dollar terms from the 2008 peak."

Eleana Norton from the group added that Russians are increasingly seeing London property as a "safe and attractive investment".

According to Ms Norton, recent events in the eurozone are behind the pound's relative weakness against the Russian currency.

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Posted by Eleanor Ward