London sales dominating UK property market
A combination of factors is contributing to the high demand for property in Central London, as reported in Gulf News.
As a result of the weak sterling, overseas buyers currently have the advantage when buying property in the UK.
In comparison to the Q3 price peak in 2007 in prime Central London property, buyers from the Far East are getting discounts such as 60%, and those from the Middle East up to 30%.
With no immediate rise in price predicted, these benefits look likely to continue.
Wider availability of mortgage finance for first-time buyers is also maintaining demand at the lower end of the market.
Numbers have more than doubled compared with the same time last year.
Forecasters have predicted this demand to carry on, with an annual growth of 3.2%, which will override the 0.5% reduction in GDP expected.
In the rest of the UK, however, sales don’t look as promising.
A price fall of 1% is predicted for 2012, and an even smaller fall in 2013.
The focus of investors is therefore sure to remain firmly on London.