The London agents Marsh and Parsons have published their Spring report on London’s property sales market. They say that the ongoing low supply of property coming on to the market has hit central London particularly hard. This has had the effect of pushing up prices, especially in the mid to upper price brackets.
Marsh and Parsons say that although supply is tight, deals are still being done and around 45% of the agents they surveyed thought that instructions would increase in 2011. Demand for prime property in London remains strong and the problems affecting the Eurozone are encouraging many foreign investors to look for bricks and mortar on this side of the channel. If you are wealthy enough to think about bidding for a prime London home you may face some strong competition. This is probably not of much concern for the majority of our landlord insurance clients whose portfolios are usually measured in hundreds of thousands of pounds rather than millions! The strength of the Pound has encouraged many overseas investors to see the UK as a safe haven and a London home is part of the package for rich people wishing to move their business interests or personal wealth to England.
There have been reports in the news recently that the results of the French election have strengthened London’s appeal to those French citizens unhappy with likely direction of French politics. Until the Euro’s problems are resolved it looks as though London’s top end market will continue to see interest from our European neighbours, at least those who are rich enough.