Liquid error: wrong number of arguments (2 for 1) More than half of prime London properties bought by second-home investors | Marsh & Parsons Sales and Lettings Estate Agents London

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More than half of prime London properties bought by second-home investors

Wed 27 Apr 2016

Second-home investors and people looking to buy homes for the purposes of letting them out to tenants are the
main driver behind sales in the prime property market in London, it has been revealed, with more than half of
purchased homes going to these two groups alone. According to a newly published London Property Monitor
report from estate agent Marsh & Parsons, the first quarter of this year has seen these two groups account for as
many as three in every five homes sold in the prime market. This has increased the number of cash sales taking
place in the sector, dropping mortgage lending in the area.Buy-to-let investors were the most prominent buyers
during this three month period, the report has stated. Between January and March of this year, PRS buyers were
responsible for the purchase of as many as 36 per cent of all prime London homes sold; a higher proportion than
any other group.This is the fastest quarter for rental investment in prime property in London since the end of
2014, when buyers looking to rent out their properties accounted for 37 per cent of sales in Q4 of that year. This
three month period also helps to reverse a trend that had seen real falls taking place in prime property investment
from landlords.In fact, between the last quarter of 2015 and the first quarter of this year, there has been a rise of
some 26 per cent in the number of homes bought in this area by landlords. This is thought to have been down to
a reaction from buyers who wanted to get in before the three per cent Stamp Duty levy, getting themselves more
stock without accruing the higher price."Investors will always be the stalwarts of the prime London property
market as its the golden goose of capital returns. But second home owners were much more prominent in the
market than we would typically expect," said David Brown, chief executive officer of Marsh &Parsons.

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