The Prime Central London market is seeing persistent demand in the current global economic and financial instability, while supply levels are close to a historic low as homeowners and investors sit on prime assets.
These same factors are stimulating demand from investors, particularly from overseas based buyers seeking to secure funds in the prime London residential market. Buyers from Greece, Spain and Italy have a growing presence in the market, with 20% of all buyers in central London currently from abroad.
The pace of growth in the London market has slipped over recent months, with activity in the housing market taking a backseat to the Jubilee and the approaching Olympics.
Sue Foxley, Head of Research at Cluttons, said: “The central London market remains buoyant, but even London activity is slowing relative to its performance in 2011. The outcome of the current Eurozone crisis is not yet known, which is denting confidence and encouraging London property owners to retain Central London residential assets in the face of instability in the residential markets. At the same time, strong demand from international buyers seeking a safe haven is creating even more competition for homes and sustaining prices. Whatever the outcome of the Eurozone crisis, buyers and investors are demonstrating faith that London is well positioned to see a faster return to growth than most of its European counterparts.”