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Impact of Russia sanctions on house prices in London

Analysts warn British sanctions on Moscow oligarchs threaten to drive down property prices in London and beyond.

Some experts predict that rich russian will “flee the property market in a panic” as the government plans to seize some of their financial assets, Investment supervision reported. Like the fall of Ukraine War Going viral, Westinister is proposing to take the assets of Kremlin-linked oligarchs and disclose dubious holdings through a new register.

The investment news website predicts that “the UK will be slow to sell or seize” £8 billion worth of Russian-owned property, businesses and other assets here, “£1.1 billion in Some of them are in London.”

Likewise, the billionaire owner of Chelsea FC, Roman Abramovichis looking for a buyer for his £150m Kensington mansion and Chelsea flat amid an atmosphere of ‘panic and uncertainty’. London Evening Standard.

In an article for AudienceAlex Marsh, editor-in-chief of wealth management magazine Spear, says that “many of today’s high-net-worth Russians may be trying to free up capital by selling their homes when the sanctions hit”.

‘Ripple effect’

In a further blow to wealthy overseas owners, Home Secretary Priti Patel last month announced plans to eliminate so-called golden visa program in an effort to stem the flow of “dirty money” into the UK from Russia.

Various crackdowns have fueled speculation about a possible collapse in London property prices. walkie talkie pointed out that “Russian cash flow has been at such a large stage that it is believed to have driven central London property prices up 36.5% in 2007”.

However, some experts believe that even a large exodus of Russian money from the London real estate scene may not have a significant impact. “The Russians leaving the UK property market will have no impact,” said Edward Heaton, founder and managing partner of national sales agent Heaton & Partners.

Heaton told luxury real estate magazine PrimeResi that although Russians have bought a large amount of real estate over the past few decades, they are now “a minority of buyers”.

He added that Brazil, India and China are full of “billionaires with burning money in their pockets”.

That assessment is echoed by Geoff Garrett, director of specialist mortgage brokerage Henry Dannell. He said that although there could be more real estate if the Russians fled, and “the flow of inventory is likely to drive down prices in other exclusive areas”, “downward pressure should be limited”. .

But according to Marsh in The Spectator, “historically, the capital served as a mooring for the rest of the country” and “the depth and breadth of Russian wealth in Britain is substantial.” So “we would be naive not to expect to feel its absence if it started running,” Marsh wrote.

However, such an absence could benefit some at the bottom of the housing ladder. Rowan Moore, author of Slow burning cityin an article for The Observer.

“If billionaires buy in Kensington, then bankers with a little less money will start looking to the slightly less expensive counties where the most successful professionals can be pushed further out, etc., until first-time buyers in outlying counties noticed that their studio apartment, Moore said.

https://www.theweek.co.uk/news/world-news/956019/the-impact-of-russian-sanctions-on-london-house-prices Impact of Russia sanctions on house prices in London

Fry Electronics Team

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