It has been reported here that the London property market has remained strong despite the wider stagnation across the country, partly because of the attractions it holds for wealthy international buyers. A new report in Realty & Investments adds to this picture, revealing that there are five buyers for every one property available within the capital.
According to R&I, London prices rose by 6.2 per cent from December 2009 to December 2010, with prices in some areas jumping as much as 10 per cent. These figures are in contrast to those for the UK as a whole. With this continued growth, the average price for a house in the capital is reported to be £342,325, compared to £163,814 elsewhere. Property experts say that much of this is due to interest from overseas buyers and the image London has as a “prestigious and safe place” to live and work, the publication says.
While this buying trend continues, there is also strong rental demand as deposit requirements remain high, says R&I. However, conditions in the buy-to-let mortgage market seem to be improving, even as the rest of the mortgage market remain tight. The article says that figures from the Council of Mortgage Lenders show an increase of 7 per cent in the value of buy-to-let mortgages approved in the fourth quarter of last year.
Factors contributing to the robust demand for rented housing in the capital include the demand from international executives working there, and the high prices which mean people must spend more time renting while they save for a deposit, Realty & Investments reports.