Russian homebuyers spent £190m on London property last year

The latest property market analysis by London lettings and estate agent, Benham and Reeves, has revealed that Russian residential property purchases contributed an estimated £190m in market value and £13.2m in stamp duty tax in 2021, a contribution that could now evaporate as Russian buyers are hit with frozen assets preventing them from purchasing.

Some 82,305 residential property sales (Type A) took place across the London market last year to the tune of £5555.7bn in market value, while homebuyers paud out £3.7bn in stamp duty tax.

In addition to these primary purchases, a further 13,016 transactions took place for additional purchases such as second homes and buy-to-let investments (Type B).

It’s thought that approximately 30% of this market activity was attributed to international buyers, with Russian buyers accounting for 1% of all market activity.

This means that Russian buyers accounted for an estimated 247 primary residential property purchase across the London market in 2021, with a total market value of £167m, paying just over £11m in stamp duty tax in the process.

Benham and Reeves also estimates that Russian buyers accounted for approximately 39 Type B transactions at a market value of £22.8m, paying £2.2m in stamp duty tax at the higher rate for this type of purchase.

In total, Benham and Reeves estimates that 286 London properties were sold to Russian buyers in 2021, sitting just shy of £190m in market value and netting the government almost £13.3m in stamp duty tax.

Director of Benham and Reeves, Marc von Grundherr, commented:

“ Russian activity has long contributed to the overall health of the London property market, with Russian buyers traditionally prevalent within prime London neighbourhoods.

However, this certainly looks set to change following our swift implementation of economic sanctions against Russia and while an initial exodus is already materialising, we can expect this segment of international buyers to dwindle as assets are frozen, the Iron Curtain falls once again, and the Russian economy continues to disintegrate at some pace.

This is likely to remain the case until this terrible act of war is ceased and even then it will no doubt take some time before the Ruble returns to the capital.”

Data sourced from the Land Registry Price Paid data set for residential transactions in 2021 across the London market. Type A transactions relate to primary residential purchases by homebuyers, while Type B transactions relate to residential purchases of additional homes such as second homes or buy-to-let investments.
Proportion of the market attributed to international buyers based on 30% of total market activity
While proportion attributed to Russian buyers based on 1% of total market activity.