According to market analysis by Benham and Reeves, Russian property owners, in London, spent £190m in market value and £13.2m in stamp duty tax in 2021
Last year, 82,305 residential property sales (known as Type A) took place across London amounting to a total of £55.7bn in market value, while homebuyers paid out £3.7bn in stamp duty tax.
A further 13,016 transactions also took place for additional purchases such as second homes and buy-to-let investments (known as Type B).
30% of this activity was attributed to international buyers – Russian property buyers accounted for 1%.
How many London properties do Russian homebuyers own?
Russian buyers accounted for an estimated 247 primary residential property purchases across London in 2021, with a total market value of £167m and £11m in stamp duty tax.
Russian buyers also accounted for 39 Type B transactions at a market value of £22.8m, paying £2.2m in stamp duty tax.
In total, Benham and Reeves estimate that 286 London properties were sold to Russian buyers in 2021, sitting just below £190m in market value and £13.3m in stamp duty tax.
Will there be an increase in Russian property ownership?
Director of Benham and Reeves, Marc von Grundherr, commented: “Russian activity has long contributed to the overall health of the London property market, with the might of the Ruble traditionally prevalent within prime London neighbourhoods.
“However, Russian buyer activity still only accounts for a very marginal proportion of market activity and so while the swift implementation of economic sanctions against Russia may have a knock-on effect here in the capital, they certainly won’t spur a market decline of any sorts.
“In fact, while the expectation is that this segment of international buyers will now dwindle as assets are frozen and the Iron Curtain falls once again, the likelihood is that we may actually see an increase in Russian ownership.
“The London market has always been a safe haven in times of crisis and with many looking to flee a free-falling Russian economy, there’s a very good chance London will be their destination of choice.”
