Buyers from the eurozone are bagging £26,000 discounts on London property due to sterling's depreciation over the past weeks as markets react to the UK's vote on its membership of the European Union.
London estate agents Stirling Ackroyd have estimated that the depreciation of sterling in June has meant that the average house price in London stands at just €596,900.
This figure compares to a record high of €630,000 in November 2015, meaning homes in London have become €33,200 cheaper for euro buyers over the past seven months – a fall of £26,000. The saving amounts to a 5.3 per cent discount for buyers on the continent.
Andrew Bridges, managing director of Stirling Ackroyd, said: "European buyers are snapping up bargains across London. A declining exchange rate has meant London is becoming a more affordable global property hotspot – particularly for those paying in euros.
"If Britain votes to leave the EU, sterling is set to fall further so, ironically, London would become even more affordable – and therefore more attractive – to overseas buyers paying in euros. While eurozone buyers are propping up the temporarily soft market as prices stutter, Brexit might make Europeans much more significant players in London's property scene."
Data from HM Revenue and Customs today suggested that the EU referendum has been dampening the UK house market, as the number of property transactions edged up slightly in May, but remained nearly 12 per cent lower than at the same point last year.