London's new buyer registrations soar by a quarter
Wed 10 Feb 2016
The number of new buyers registering throughout Prime London in January 2016 rose by 24% year-on-year,
according to estate agent Marsh & Parsons.
Outer Prime London areas are experiencing the highest New Year demand from interested buyers, with Barnes
and Bishops Park seeing among the strongest rises in the number of buyers registering locally to buy property.
However, this sudden surge in demand for Prime London properties is contrasting with a continued shortage of
housing stock in the capital. The supply of homes in Prime London fell 12% year-on-year in the last three months
of 2015. This has led to intense competition to own a home in the capital, with 13 buyers for every property in
Prime London at the end of last year.
Peter Rollings, CEO of Marsh & Parsons, commented:
The London property market has begun 2016 with a spring in its step. The New Year always tends to bring a
resurgence in purchase activity, as buyers shake off the last of the Christmas holiday haze and re-focus their
attention on climbing up, or onto, the ladder. But the figures were currently seeing are strong even by those
standards. Private buyers, landlords and other investors are rushing to secure their preferred property before the
1st April Stamp Duty hike.
The proportion of purchases in Prime London made by mortgage buyers rose from 49% to 66% between Q4 2014
and Q4 2015. As a result, the proportion of purchases completed by cash buyers fell from 51% to 34% over the
same period. Even within Prime Central London typically a hotspot for cash buyers mortgage buyers
accounted for 44% of all purchases by the final quarter of 2015. This comes as cheap mortgage finance
continues to be available, while interest rates are held at historic lows.
Peter Rollings added:
Its great to see mortgage buyers making such a solid comeback to the Prime London market. Until recently, a
combination of the areas high property prices and tough mortgage terms from lenders anxious about creating
another housing bubble, has meant that Prime London and Prime Central London in particular has been
heavily dominated by cash buyers, traditionally mostly wealthy private buyers and buy-to-let investors.
However, the effects of the Government schemes designed to increase liquidity in the property market such as
Help to Buy have finally reached the higher end of the London property market. As a result, mortgages have
become more accessible for those looking to buy in Outer Prime and Prime Central London, but who dont have
the capital to fund the whole purchase themselves, such as aspirational families and young professionals.