London sentiment 'stable'

Investor sentiment in London continues to be 'robust', according to a new report, despite the ongoing economic downturn.

Research carried out by Young Group found that 86 per cent of investors think residential property values will rise or remain static over the next year.

This is compared to just 39 per cent of investors who said they thought property prices outside the capital will rise or remain static in the same period.

What's more, half of the investors polled said they intended to buy residential property in London in the next 12 months, compared to just six per cent outside the capital.

"As purchase transaction volumes in the residential property investment market reduce, it is increasingly evident that the London market is distinct from that of the UK as a whole," said Neil Young, chief executive of the property portfolio management firm.

"Both property and rental values in the capital are cushioned from the cooling in the housing market, buoyed as a result of the inherent disparity between supply and demand."

Recent figures from the Royal Institute of Chartered Surveyors showed, however, that 64.1 per cent more of its members think house prices will fall rather than rise.

Published 12th March, 2008

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