Affect on London property prices

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

Forget kerb appeal: LRG report reveals what really triggers a homebuyer’s offer

One of the UK’s largest property services groups has published its debut sales report, uncovering what genuinely persuades buyers to make an offer – and the findings challenge the traditional focus on kerb appeal. While sellers often guess which improvements will pay off, the data shows where money is well spent and where it’s wasted.…
Read More
Breaking News

Prime London’s love affair with period homes continues

One in four listings are historic properties The latest research from Jefferies London shows that nearly a quarter of homes listed for sale across prime central London (23.3%) offer high-end homebuyers the chance to secure a period property, with demand for prime period properties at its highest in Maida Vale. Jefferies London analysed current for…
Read More
Breaking News

Industry Response to latest Nationwide House Price Index

Nationwide House Price Index for October 2025, with the latest figures showing no Halloween haunting for homebuyers where house price growth is concerned – despite widespread talks of Autumn Budget uncertainty hitting the market. The latest index shows that: – House prices increased by 0.3% between September and October of this year. On an annual…
Read More
Breaking News

The capital’s most haunted property hotspots for Halloween homebuyers

The latest analysis by Foxtons has revealed which of the capital’s spookiest postcodes command the largest house price premiums, as the average cost of purchasing a property in one of London’s most haunted neighbourhoods comes in 48% more than the wider London average. Foxtons analysed the property market across 14 of London’s most haunted locations,…
Read More
Breaking News

Annual house price growth edges higher in October

Slight increase in annual house price growth to 2.4% House prices were up 0.3% month on month Kitchen and bathroom renovations most popular amongst homeowners in last five years Analysis based on Nationwide’s HPI data shows extensions or loft conversions with a bedroom can increase house value by up to 24% Headlines Oct-25 Sep-25 Monthly…
Read More
Breaking News

How much will a Halloween Castle set you back

The latest research from Enness Global has revealed that, for those looking to follow in the footsteps of Count Dracula this Halloween, the average castle on the UK market will set buyers back around £2.2 million, requiring a deposit of £332,609 and a monthly mortgage repayment of more than £10,000. Enness Global analysed current castle…
Read More