Market Snapshot - London

2011 has seen the central London residential property market continue to enjoy immunity from the wider UK economy amidst its increasing uncertainty.

According to Land Registry figures, values in the leading 10% of the country grew by 7.5% in 2010 and are now just a fraction from their peak, while the bottom 10% of areas saw prices fall by 3% and remain almost 20% off peak

There are several factors that make prime central London residential property such an attractive investment.

• Strong macro fundamentals - global financial capital, culture, education and geography.
• A robust and transparent legal system.
• Stable yields – high occupancy levels from HNWIs and corporate tenants.
• Supply and demand dynamic – a global pool of investors, both domestic and international, attracted to a market with a scarcity of stock and a lack of new supply.

Underpinning the resilience of the market has been belief in its long term desirability, it is a tangible asset and the appeal of diversification. The strength of many currencies against pound sterling continues to drive international buyers who see mid-long term value in the market.