Press Release: Cash buyers boost London property market
Tue 26 Oct 2010
The central London property market is less exposed to the ongoing mortgage finance drought than the rest of the country, according to estate agent Marsh & Parsons. In August, 71% of property purchases in central London were made by cash buyers, unaffected by issues in the lending market.
In contrast to London, the majority of property purchases nationally are made with a mortgage. Cash buys accounted for only 27% of property purchases in Britain in August 2010.
The proportion of cash buyers in central London has also grown during 2010, suggesting there is no slowdown in demand on the cards for prime properties. In February this year, cash purchasers accounted for 58% of the total buyers in areas such as Chelsea, Kensington, Westminster and Mayfair. The number of property sales in the capital has risen at the same time, increasing 30% from February 2010.*
Peter Rollings, Managing Director of Marsh & Parsons, said: "The shortage of mortgage funding on offer is the biggest threat to the recovery in the UK housing market, stifling demand from buyers. But, while the market may be starting to run out of steam in some parts of the country, London continues to perform strongly. Demand from cash rich buyers, both from the UK and abroad, looking for strong and safe returns, is buoyant and this is helping to keep activity levels high. Central London is in many respects insulated from the national mortgage drought."
Mortgage lending in the UK remains cripplingly low. In August 2010, the number of house purchase loans issued by lenders nationally stood at 51,600 53% lower than in August 2006.
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For further information please contact:
The Wriglesworth Consultancy Tom Urpeth / James Staunton 0207 427 1400
Marsh & Parsons has been part of the London property scene since 1856. The sales and lettings agent has 14 offices situated in prime positions across central, west and south London. They have an intimate and extensive knowledge of the area.
Marsh & Parsons are an independent and professional firm with a 'can-do' attitude covering all aspects of residential property. They aim to establish individual relationships with clients through a business built on energy, agility, professionalism and knowledge. Their business aim is to be the agent who not only understands the local area around their offices better than any other agent, but also to be at the heart of the community.