Currency exchange 'boosting overseas buyers'

Currency exchange rates are increasing the number of overseas property buyers in London.

This is according to a recent study conducted by Savills, which revealed that 55 per cent of demand for buildings in the capital comes from overseas buyers.

By comparison, during the property market's peak in 2006/07, just 45 per cent of interest came from abroad.

Yolande Barnes, head of Savills residential research, commented: "The weakness of sterling, and the consequently strong purchasing power of foreign currency buyers, has undoubtedly fuelled this rise and international buyer demand remains robust.

"By the end of March 2010 property prices were ten per cent lower than their peak for sterling buyers, but in US dollar and euro terms they remained 33 per cent and 30 per cent below their peak respectively."

Nigel Ellis, director of estate agent Prickett & Ellis, added that overall it was "a good thing" for the market to have such an increased level of interest from abroad.

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Posted by Eleanor Ward