Foreign Buyers Bullish on London Property
By: Rentals London
According to a leading real estate baron, nearly 88 percent of his clients are internationally based and a majority coming from Asia, Russia and Middle Europe.
There is a supply crunch in London property with the number of properties available dropping fast as demand has shot up. Buyers from Spain and Italy are making a strong presence in the market in recent times. Almost 20 percent of central London buyers are from abroad. This figure rises further for properties valued at £5 million and more.
The pace of growth in London property prices had slipped a little due to the Olympics effect as house for sales fell as prospective sellers started renting out rooms or entire properties at attractive prices during the run up to the event and after.
House prices are set to grow soon by 2-3 percent outweighing the UK national average and sounding a positive outcome amidst difficult market conditions. The house prices in the UK as a whole fell 3 percent in the last quarter and a marginal drop of 1 percent was registered in 2013.
Central London Buoyant
It is the central London property market that remains buoyant and quite appealing to the investors. Property owners want to retain their London assets during this period of instability and keep the supply low. This aspect combined with rising demand from international buyers is bolstering up competition and exerting an upward pressure on prices in all high-value market segments.
Rental Yields Up
The rental market continues to fluctuate after its dream run in 2011-2012 period. The strong demand in the medium-term plus the problems faced by first-time buyers in securing mortgages has increased rental yields. The long-term demand for rental properties looks strong as both residents and visitors to the capital prefer the flexibility of rental properties.
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