Cash is king in Londons prime property market
Tue 26 Apr 2016
More than a third of prime London property acquisitions made by buy-to-let investors in the first quarter of the
year were made with no debt, highlighting the importance of cash in powering the market for prime property.
Three-fifths of buyers in the prime market, which is concentrated largely in central London, did not take out a
mortgage when buying their home, according to new research by estate agent Marsh & Parsons.
Accounting for 36% of all sales during the first three months of 2016, buy-to-let investors were the most prolific
type of purchaser across prime London, as investors rushed to beat the introduction on 1 April of an additional 3%
stamp duty for anyone owning more than one home.
Together, buy-to-let investors and second-home owners accounted for 59% of all purchases in prime London
during Q1. In prime centra London, this figure was even higher reaching 76%.
David Brown (pictured), CEO of Marsh & Parsons, commented: Investors will always be the stalwarts of the
prime London property market its the golden goose of capital returns, and people are still clamouring for a slice
of the action. But second-home owners really jumped to it this spring too, and were much more prominent in the
market than we would typically expect. But this was by no means a typical quarter.
Sales activity in the opening three months of this year has been exceptionally skewed by the additional layer of
stamp duty for both buy-to-let and second-home purchases. Naturally, theknee