By Melissa Lawford

As the pound continues to plunge, dollar buyers from over in America are making big savings on prime central London properties.

The dramatic decline in sterling following the Kwasi Kwarteng mini-Budget created an extraordinary window of opportunity for dollar-based buyers in prime central London — and at Black Brick Property Solutions, we saw the impact on our client base in real time.

The pound’s fall to record lows against the dollar triggered an immediate surge in enquiries from wealthy international buyers, particularly Americans, Middle Eastern investors and buyers from Africa. While sterling has since partially recovered, it remains significantly below its May 2021 peak, meaning the currency advantage for dollar buyers is still very much in play. The scale of potential savings is striking: one prime central London property that would have cost an American buyer $81 million at the June 2016 exchange rate peak was, at the moment of maximum sterling weakness following the mini-Budget, available for just $36 million — a saving of approximately $45 million.

At Black Brick, we moved quickly to communicate the practical implications of this currency shift to our clients:

“The currency exchange rate has definitely helped. We can say to our clients that their stamp duty bill is effectively paid, compared to if they were buying this time last year.” — Camilla Dell, Managing Partner, Black Brick Property Solutions

The composition of our client base has also shifted dramatically, reflecting the broader market dynamic:

“Last year, 80pc of our clients were domestic. They were looking for family homes in the suburbs. Now that has been flipped on its head and at least half of our buyers are internationals looking in central London. It’s Americans, buyers from the Middle-East, and from Africa – people who have made their money in oil and gas, in industries pegged to the US dollar, which are benefiting from the current crisis.” — Camilla Dell, Managing Partner, Black Brick Property Solutions

International buyer activity in prime central London had already been recovering strongly ahead of these currency moves. After falling to just 35 per cent of all PCL transactions in 2021, overseas buyers accounted for 48 per cent of sales in the first half of 2022, according to Hamptons. Wealthy international buyers are also relatively insulated from the rising interest rate environment, given that prime central London markets tend to operate with lower levels of leverage than the mainstream market.

For internationally mobile, dollar-denominated buyers, the combination of suppressed sterling, softening prime central London prices and a world-class real estate market continues to make London a compelling proposition.

Read more in the full article here.

With mortgage rates on the rise and the market peaking, is now an ideal time for you to downsize?

A perfect storm of rising household bills, increasing mortgage rates and warnings of slowing house price growth has created one of the most compelling windows for downsizing in recent memory. As Managing Partner of Black Brick Property Solutions, I have been advising clients on exactly this dynamic — and the window of opportunity is one that astute homeowners are already acting on.

“Savvy downsizers were already trying to ‘cash in before the market takes a turn’.” — Camilla Dell, Managing Partner, Black Brick Property Solutions

This view is supported by broader market data. Savills has noted that after a strong burst of house price growth — the first sustained period of significant gains in several years — the gains made on an existing family home are currently likely to far outweigh the costs of purchasing a smaller property, even after stamp duty. As energy costs continue to rise, the financial case for moving to a smaller, more efficient home becomes even more compelling.

The numbers bear this out. Research suggests domestic energy costs run at approximately £25 per square metre per year at current prices, meaning a move from a 140 sq m house to a 65 sq m flat could save close to £2,000 annually in bills alone — before factoring in reduced council tax, lower maintenance costs and the potential to release substantial equity.

Across the country, homeowners are acting on these calculations. Research from Purplebricks found that more than half of all house hunters would be prepared to downsize to cut their bills, with 60 per cent of those actively downsizing doing so specifically to reduce household running costs. Younger age groups — those in their 50s and 60s — are increasingly willing to make this move, with Savills data showing that owners in their 50s account for 21 per cent of all property sales in Britain.

At Black Brick, we work with downsizing clients to ensure they achieve the best possible outcome on both sides of the transaction — maximising the sale price of their existing home while securing a property that genuinely meets their needs for the next chapter. In a market that may be approaching a turning point, timing and strategy have never mattered more.

Read the full article here.

“City living has suffered during the pandemic, but some village-like pockets have thrived”, writes Liz Rowlinson of The Telegraph this week.

This new piece focuses on the impact that the pandemic and subsequent lockdown has had on our communities here in the UK, reflecting on how many of us have began to “embrace a more local way of life”.

Sharing her insights into how this culture-shift has impacted the property sector, our Founder and Managing Partner, Camilla Dell commented: “Buyers that might have bought in central London have been looking at Richmond-upon-Thames, Kew, Wimbledon, Chiswick, Hampstead, East Sheen and Dulwich. Access to parks has become more crucial.”

Read more in the full article here.

What does the future hold for London prime property in 2021? Our Founder, Camilla Dell shares her thoughts in a new piece for The Telegraph.

Whilst 2020 was all about escaping to the country, Camilla shared that she believes 2021 will be the opposite: “Half of them stayed commutable in the Home Counties. The other half moved to Somerset, which is risky if you are suddenly called back to your desk at 8am tomorrow,”.

With many not actually having sold their properties in London, and instead just buying 2nd home country houses, Camilla expects that in 2021, “the masses will flood back to the city,”.

Read more in the full article here.

“Footballers in the Home Counties are having to move into hotels ahead of the new season as the supply of high-end rental homes has dried up”, writes Melissa Lawford this week in The Telegraph.

For a take on the situation in London, Black Brick’s Camilla Dell shared that landlords who have recently renewed tenancy agreements in the capital have had to accept 10pc and 20pc rent reductions, adding that “Flats without outside space are faring the worst,”.

Read more the full article here.