International demand for homes in prime central london continue to rise
Post on 14-Jun-2015
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DESCRIPTIONThe Eurozone crisis has continued to boost international demand for houses and flats to rent in Fitzrovia, Mayfair, Hyde Park, among a host of other prime central London locations.
- 1. International Demand For Homes In Prime Central LondonContinue To RiseThe Eurozone crisis has continued to boost international demand for houses and flats torent in Fitzrovia, Mayfair, Hyde Park, among a host of other prime central Londonlocations.The fact that London is generally viewed as a safe haven amid the economic turmoil inthe Eurozone means that more people are moving to the capital in order to escape thecalamity and preserve their wealth.But while many foreigners may prefer to buy property in London, the general shortage ofhomes on the sales market is forcing them to rent property instead."We have reached the point of no return for the housing market, said Gemma Duggan ofthe National Housing Federation. Successive governments have failed to tackle theunder-supply of housing and time is now running out.
2. A quick online search for a house for sale in Little Venice, for example, a west Londondistrict a short distance from Marylebone, which is generally popular with internationalhomebuyers, shows that there are very few houses currently on the market in the area.Consequently, many people looking to buy a home in the area will have to opt for rentedaccommodation until more houses become available.The shortage of properties for sale also reflects a sharp rise in the volume of peoplesnapping up homes in prime central London.According to estate agency WA Ellis, there was a 36 per cent rise in the number ofproperty transactions in prime central London from September to October.Tim des Forges, partner in residential sales at WA Ellis, said: The first week of half termwas unprecedented, and is perhaps now bringing in buyers who avoided London duringthe summers events. This is illustrated by the total numbers of sales in prime centralLondon in October, which is up by 35.81 per cent on September.The companys letting division has also been rather busy, particular when it comes toletting homes in the 1,000-3,000 per week bracket and more tenants are staying forlonger; the average tenancy now stands at around three years, according to WA Ellis.These tenants are seeking two or three bedroom properties in Prime Central London, andany property that presents well is letting quickly, said WA Ellis Lucy Morton.Not only are more people now required to live in rented accommodation, but the resultingshortage of homes for sale means that property prices in prime central London are rising.The latest Knight Frank Prime Central London Index shows that the average price of ahome in the region appreciated by 0.8 per cent in October compared to the previousmonth, pushing annual growth to 10.1 per cent. Prices are now 52 per cent higher than inMarch 2009. 3. Our analysis of market activity confirms that average prices have climbed 10.1 per centover the past year, with flats [11.1 per cent] outperforming houses [8.4 per cent] in termsof growth, said Liam bailey of Knight Frank.Among the areas performing particularly well in terms of price appreciation is Marylebone,which has seen a growth over the past year of 14.5 per cent the highest annual rise ofall areas covered by the index.Property prices in Marylebone are rising on the back of a general shortage of properties forsale in the area in relation to high demand. But with many people wanting to live in thearea, more people are now prepared to consider looking at a house or flat to rent inMarylebone.Andrew Ellinas of leading estate agency Sandfords said: Marylebone, with its wealth ofelegant properties and desirable High Street, has been attracting affluent buyers for anumber of years. Demand for properties priced between 1.5 and 4million is intense.With demand for housing in prime central London expected to continue to rise, very fewpeople would bet against further capital growth and rental price rises moving forward overthe next few years.