In most parts of Prime Central London property prices recovered dramatically from the lows experienced during the financial crisis of late 2008 and early 2009. Just over the last 2 years, prices in these areas have risen well in excess of 30%.
Demand has increasingly been driven by overseas purchasers taking advantage of the large fall in the value of the pound across a broad basket of foreign currencies. At present many overseas buyers have seen their currencies strengthen so markedly against GB sterling, that irrespective of the recent rebound in London property prices, they are still effectively able to buy at prices that are 25- 35% lower than they were only a few years ago. This has provided overseas buyers with a "once in a lifetime" opportunity to acquire their own stake in an prized asset.
With a bank of England base rate at a record of 0.5%, ultra low borrowing costs over a sustained period have also underpinned domestic demand from UK buyers.
London's dominance as a worldwide financial centre, its widely recognized " safe- haven" status, and the ever present restrictions on new housing stock combined with the finite supply of period homes in central London, provides a further potent and robust investment platform.
Property prices in prime central London have already increased by over 7% so far this year, and double digit capital growth is again likely by year end.
Renting – London
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