High demand for flats for sale in London pushes prices higher
UK home prices fell for the tenth successive month in October and are down 3.2 per cent year-on-year, marking an increase on the 2.6 per cent annual decline recorded in September, according to latest figures supplied by the Land Registry.
The average home price in October fell by £1,462 to £159,999 month-on-month. Average residential property prices peaked at £166,568 in August 2010.
Residential property prices fell across the country, with the exception of London, which is being supported by a lack of housing supply and strong national and international demand for houses and flats for sale in London.
Demand for property in London is being driven by the country’s political stability. Consequently, more mortgage lenders are now looking to lend to those homebuyers seeking to purchase a home in the capital, simply because the market in the capital is seen as safe a bet.
“Over the past two years, there has been a noticeable increase of foreign private banks. London is seen as politically safe and the property market in particular is viewed as robust” says Mark Harris, director of SPF Private Clients, a high-end mortgage broker.
Interest in primary property for sale in London in desirable locations, such as Mayfair, Regent’s Park, Chelsea and Marylebone is particularly robust at the moment.
A general shortage of flats and houses for sale in Marylebone, in relation to high demand has forced local property prices significantly higher in recent years.
The same could be said as far as houses for sale in Marylebone Village are concerned, as well as flats for sale in Marylebone Village, due to the area’s high popularity.
“London’s worldwide reputation as a safe haven for money in a turbulent financial climate has been reinforced by the latest growth figures for the prime property market,” said Andrew Ellinas of Sandfords. “Property prices have now risen by nearly 40 per cent since the post-credit-crunch low in March 2008, bringing prices well above the 2008 peak.”
The property market in Marylebone, like much of prime London, is being supported by mainly wealthy overseas purchasers buying either a primary or secondary residence in the capital.
London-based estate agents Hamptons International report that overseas nationals make up as much as 75 per cent of all buyers of prime properties in central London at the moment, which represents a significant rise on the 50 per cent or so recorded in 2007.
With restricted housing supply and high demand from wealthy international buyers unlikely to slow any time soon, property prices in and around Marylebone are likely to appreciate further moving forwards.
In fact, property prices are likely to continue rising across prime parts of central London. Savills project that prime property values in the capital will increase by 22.7 per cent in the five years to 2016.
“Prime real estate has proved itself a stable safe deposit in uncertain times and in an investment world searching for yield and security, the five-year outlook for prime property is compelling,” says Yolande Barnes of Savills.
Author Bio : With high demand for property for sale in London, John Alcorn looks at what is driving so many enquiries for houses and flats for Sale in London, including houses for sale in Marylebone.
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