Now, with sterling expected to strengthen progressively as political and economic uncertainty clears and trade deals are agreed with the EU and other nations across the globe, overseas investors have even more incentive to move quickly.
The window in which overseas buyers can achieve maximum benefit is limited before the potential stamp duty surcharge is introduced.
It is worth remembering, the additional stamp duty on Belgravia Gate would have equated to nearly another £2m.
This almost certainly explains breaking news that the Chinese owner of the “Cheesegrater” skyscraper in the City, Cheung Chung-kiu has now agreed to buy a 45-room mansion overlooking Hyde Park for between £205m and £210m.
When the sale completes in the next few weeks it will officially become the UK’s most expensive home although Mr Cheung may renovate and convert the property into apartments with a potential value up to £700m.
Of course, it is conceivable that as 2020 progresses negative sentiment over the prospects of the UK’s future trading relationship with the EU might start to kick in once again.
This, along with sellers jacking up their prices, may begin to temper the boom that has already begun in overseas investment.
Notwithstanding that the timescale for achieving a deal is tight it must never be forgotten however, that the EU are massive net exporters to the UK.
They have every incentive to agree a deal before the end of the year.
While the French buy Citreons and Peugeots the Brits buy BMWs and Mercedes.
Furthermore, Boris no longer leads a weak minority government that can easily be bullied by EU negotiators and while negotiations will no doubt still go down to the eleventh hour it seems likely that a deal can be achieved.
Of course, in the unlikely event that this optimism is misplaced, a hard Brexit would almost certainly see sterling falling back again and result in lower prices for overseas investors as their own currencies appreciated against the pound.
Whichever way you cut it then it seems that the prospects for overseas investment in prime London and the wider UK, both residential and commercial, are pretty, bloody good.
Of course, this level of optimism may be frowned upon by the pessimists, but it cannot be denied that the dam has been burst by a Boris victory.
At this point the words of CS Lewis seem quite pertinent: “There are far, far better things ahead than we leave behind.”
Brian West is a private client manager at Conrad Capital
