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Cash comes to London - 30 November 2009

Cash rich property investors are taking an interest in London homes in the half a million plus bracket, Cluttons has reported. According to the property consultant, the professional classes are taking a long-term view of the UK property market in increasing numbers.

The firm says it has seen a 40 per cent increase in demand for investment property worth around the half million mark from solicitors, accountants and doctors, in the past six months.

With savings rates low and the Financial Services Compensation Scheme safeguarding only £50,000 per saver, some are looking to invest sizeable amounts of money in London property that can be rented out.

Cluttons’ partner, James Hyman, says: "These traditionally conservative professionals are turning to the London property market where yields and capital appreciation are both predicted to increase over the mid-to long term."

He adds: "These buyers are location driven looking for quality in a good road or block and property that will attract stable and respectful tenants."

According to The Global Property Guide, the average house price in London rose 4.8 per cent from the beginning of July to the end of September, to £268,847, compared to the previous quarter.

However, average yields in the Capital have not yet regained their pre-credit crisis levels.

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