Expensive home sales have helped boost the average house price in recent months thanks to foreign investors.  There are many reasons foreign buyers are seeking out UK property including the available supply and the ability to gain such a high quality property at lower prices than can be found elsewhere.  The weakness of the UK pound is also a vital factor in property purchases by foreign investors.  According to the January data from the Land Registry on sales of homes worth £1m or more there was a 28% increase over January 2012.  There was also an increase of homes sold at a value of £2m or more of 52%. 

In a statement to The Guardian, Giles Hannah, managing director with VanHan, remarked “International buyers, particularly from Asia, are fuelling demand for best-in-class properties and are snapping them up at 10%-14% discounts as a result of the weakness of sterling compared with their own currencies.

“UK-based buyers are also highly active and are seeing investment in London property as an alternative to a pension, and a way of maintaining and growing their wealth.

“We have also witnessed a rise in French high net worth families relocating to London owing to the increased taxes in France, creating a shortage of supply in the £5m-plus bracket and fuelling price rises.”

London has been a hot zone for investors with the average house price now at a record high of £374,568.  House prices in London have increased by 9.4% in the past year which is the largest increase in three years.  Overall, the average house price in England and Wales increased by 0.9% which was helped along to this average level by the high house price increases in London.