Central london property boom continues
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Post on 14-Jun-2015
DESCRIPTIONAnyone searching forproperties for sale in Central London will find that the list of homes available is falling, as a growing number of investors snap up rental investments in the capital.
<ul><li> 1. Central London Property Boom ContinuesAnyone searching for properties for sale in Central London will find that the list of homes availableis falling, as a growing number of investors snap up rental investments in the capital. Whats more,the number of homes on the market that have had their asking price reduced at least once hasfallen to its lowest level since late 2010 as confidence returns to the housing market, according tothe latest research from property website Zoopla.co.uk.The proportion of properties currently on the market with a reduced asking price now stands at31.5 per cent, compared to 36.7 per cent a year ago. This suggests that fewer sellers are feelingpressured to cut their asking price in order to achieve a sale. This is particularly the case as far ashouses and flats for sale in central London are concerned, with demand from investors soaring.</li></ul> <p> 2. Lawrence Hall of Zoopla.co.uk comments: The number of price-reduced properties has fallen toits lowest since early 2010 indicating growing confidence in the marketWith residential property market conditions in London rapidly improving, more investors areactively looking to either enter the buy-to-let market or add to their existing property portfolios, inorder to take advantage of the rise in the number of people looking for houses and flats to rent incentral London.The first ever Sequence lettings index shows that the number of new applicants registering withthe company in order to rent a home in March increased by 21 per cent compared to the previousmonth, while the volume of properties to rent only increased by five per cent during the sameperiod.Stephen Nation, Head of Lettings at Sequence, commented: We have seen a strong seasonal upliftin demand for rented accommodation with over 12% growth in the number of new tenantapplicants, viewings and agreed tenancies.He added: Monthly Rents of 1,375 in London remain almost double the national average of704.Aside from solid rental returns, many property investors also want to take advantage of rapidlyincreasing home values in the capital, particularly in prime central London, where prices areappreciating by an average of 383 per day, according to Marsh & Parsonsin its ResidentialInvestment Monitor Q1 2013.Following a slowdown in both the sales and lettings markets during the fourth quarter of last year,the property firm report that the prime central London residential market has turned a corner,with positive growth recorded across all London regions, led by gains in prime central London.Data provided by Marsh & Parsons shows that the average price of a flat in prime central Londonbreached the 1 million mark for the first time, while the average price for prime residentialproperty as a whole reached a new historic high of 1.53 million in Q1, leaving prices 6.1% abovethe previous market peak of Q3 2007. This translates to an average increase of 383 per day. 3. Prime Central London is once again experiencing robust price growth, driven primarily by thesupply drought and strong domestic demand, aided by a greater take up of the historically lowmortgage rates, said Sue Foxley, Head of Research at Cluttons.Moving forward, the housing market in prime central London, having successfully withstood theworst of the economic turbulence, is expected to experience further robust price growth, drivenprimarily by the shortage of homes on the market and historically low mortgage rates.Prime central London property is largely immune from short term fluctuations, said AndrewEllinas of leading estate agents Sandfords. The main reason is that a property in London hasintrinsic value that is not dependent on buyer sentiment but its use as a place to live and dobusiness in the most vibrant and cosmopolitan city in the world.Some leading property experts expect to see home values in prime central London increase by inexcess of 20 per cent over the next five years, and very few people would argue against thatforecast.</p>
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