Affect on London property prices

August 26, 2015

The turmoil in Asian markets is having its affects across the world, we have seen this week share price movements that have never been seen before across markets, on Monday the Dow Jones dropped during the day by a record amount, thankfully for investors recovering by the end of the day.

The Chinese economy has been riding high for a long time with growth well above 7%, cracks have started to appear which are causing concern with investors across the world, China appears to be slowing down, by how much analysts are not yet sure, but the Chinese Government are responding by cutting interest rates along with other measures to maintain growth.

Chinese investors in UK property have been  very prominent over recent years, no more so than in London where prices have risen phenomenally in that period. A report published this week shows offshore companies have bought more than £150billion of property in England and Wales over the past 15 years.

Are we now at the start of a correction to high end London property prices? the strength of the pound and the rout in emerging market currencies has caused many would-be investors to pause for thought. London and other parts of the UK are suddenly looking very expensive to overseas buyers. Research by Knight Frank for Bloomberg shows that interest in London property is waning among Asian investors in particular, Chinese homebuyers accounted for 9.4 per cent of sales in prime London markets in the first six months of the year, according to Knight Frank.

Some say the “bubble” in China is coming to an end, for the moment commentators are mixed as to the short term outcome,  however one thing is for sure, if the bubble burst in China it will be felt worldwide.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Breaking Property News 21/11/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   VE+ the new procurement engine cutting developers costs without compromise Finishes packages are specification sensitive and expensive components of any build – VE+ fixes this  As construction costs continue to climb and procurement timelines tighten, developers and contractors are being pushed harder than ever…
Read More →
Breaking News

Inheritance Tax Receipts raise £5.2 billion in seven months

Inheritance tax (IHT) receipts hit £5.2 billion in the first seven months of the 2025/26 tax year, according to data released by HM Revenue and Customs (HMRC) this morning. This is £0.2 billion higher than same period of the previous tax year and continues an upward trend over the last two decades. Nicholas Hyett, Investment…
Read More →
Breaking News

FMB calls on Reeves to scrap housing tax threat

The Chancellor needs to scrap the Government’s proposed landfill tax quarry exemption which will add up to £28,000 to the cost of homes on small sites in next week’s Autumn Budget, says the Federation of Master Builders (FMB). Brian Berry, Chief Executive of the FMB, said: “At a time when the Government is failing to…
Read More →
Breaking News

Full Steam Ahead! UK Construction to return to growth in 2026

Construction intelligence specialists predict renewed activity following false-start over the summer. Revised figures will see UK construction sector grow 21% over the next two years Private housebuilding remains on course to grow significantly, with activity still predicted to rise by almost a fifth in 2027 Commercial office starts set to continue their ascent, and increasing…
Read More →
Breaking News

Winter is Coming: Douglas & Gordon Warns Landlords and Tenants to Take Action Before Disputes Occur

Mould, damp, burst pipes and boilers on the blink? With temperatures set to plummet in London this week, real-estate agent Douglas & Gordon is advising landlords and tenants to take action before issues occur. With 45% of landlords experiencing arrears or disputes, often linked to property condition or delayed maintenance* the agent’s expert lettings team…
Read More →
Breaking News

Home sellers slashing asking prices amid Budget speculation

The latest research from Property DriveBuy reveals that homesellers are slashing asking prices across the country in an attempt to attract buyers in a stagnant pre-Budget housing market. The latest asking price data* shows that the average asking price in Britain (£364,833) fell by -1.8% between October and November 2025, contributing to an overall annual…
Read More →