Rich property buyers 'keeping London attractive'

Foreign property investors are propping up London's housing market by fuelling constant demand for luxury estates, it has been suggested.

The Times is reporting that demand is so strong among rich investors - also including city bosses - that most mid-range property hunters have now been forced out of large swathes of the capital.

Top-end investors have long been the mainstay of traditionally fashionable areas such as Knightsbridge, Belgravia and Chelsea - but according to analysts they are now also driving up the market in many of London's more suburban areas.

These include areas formerly regarded as being within reach of most mid-range prospective homeowners, including hotspots such as Chiswick, Clapham and Islington.

Despite the surge in demand, however, the Times suggests that savvy property hunters on lower budgets will moderate their standards and seek out less desirable areas as the capital's overwhelming pulling power continues to buoy demand.

Estate Agent Savills today reported that prime London property fell two per cent in 2007 Q4 in line with the national property slowdown, though it predicted growth would pick up quickly in 2008.

Published 3rd January, 2008

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