Foreigners buy most London homes

%VIRTUAL-SkimlinksPromo% Expensive London propertyProperty firm Knight Frank has claimed that nearly three-quarters of all new home purchases in inner London last year were by foreigners.

It has told the FT that just 27% of new home buyers in 2012 were Brits. More than half of the homes were sold to buyers from Singapore, Hong Kong, China and Malaysia.
Nobody from Knight Frank was available this morning but the FT claims the figures show it is not just the most expensive homes that are going to foreigners – mid-market homes are now out of the price range of most Brits.

The FT reports that the problem is developers selling before the properties are even built – a practice common in Asia. That means the number of properties actually available for sale to Brits is much lower than official statistics show, as many were sold to foreigners before the foundations were even dug.
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