London’s wealthiest real estate buyers are getting younger, according to a report Monday from Knight Frank.
In the year to September, 73% of buyers investing in super-prime homes in the city—defined by Knight Frank as those priced at £10 million (US$12.8 million) or more—were younger than 50. In comparison, at the start of 2015, buyers under 50 accounted for less than half of super-prime purchases, the estate agency and property consultant said.
Driving the increase is a change in how wealth is created.
“Super-prime buyers are getting younger because there are opportunities to make money in tech that are unrelated to your age,” said Daniel Daggers of Knight Frank’s private office in the report. “At the same time, mature wealthy individuals are increasingly passing on businesses and assets to the younger generations to enable them to travel and enjoy new experiences.”
The increase in younger buyers comes amid the political uncertainty that has affected sentiment since the EU referendum in 2016.
Brexit had been scheduled for Oct. 31. On Monday it was announced that the deadline had been extended again, until Jan. 31, 2020.
But the continuing uncertainty isn’t holding back demand, which is continuing to build in London’s super-prime sector.
In the third quarter of the year, there were 6.5 potential buyers for every new sale listing above £10 million, the highest figure since the first three months of 2014, the report said.
The demand is being buoyed by the falling value of the pound.
“Dollar-denominated buyers believe now is the right moment to buy U.K. real estate to capitalize on the weak pound,” said
also of Knight Frank’s private office. “Many are taking the view that whatever happens with Brexit, any weakening of the pound will be quick to recover. If enough buyers fast-track their decision making, and supply continues to fall in the best postcodes, we could see a shift towards a sellers’ market”
As more high-net-worth individuals target London, the highest-value properties are seeing transactions increase.
There were 16 sales of homes priced above £30 million in the year to May 2019 compared to 11 over the 12 months prior, the report said.
This story first appeared on Mansion Global .