Concrete Analysis | London’s less central areas will be next hot spots
Domestic buyers buoyed by mortgage schemes are driving demand outside prime central areas
Property investors around the world know London as a reliably strong and consistent market.
Investment from across the globe has historically been attracted to its traditionally prime areas, such as Kensington, Chelsea and Mayfair.
Even during the financial crisis, these areas continued to perform, earning the market an investment safe haven status shared only by New York.
While this central growth continues, it is now increasingly fuelled by a wealthy elite who are still willing to meet high price premiums, with domestic homebuyers now largely priced out. But this domestic demographic still makes the vast majority of London property purchases.
Do not believe the hype about overseas buyers who leave flats empty dominating the city's property market - only 6 per cent of purchases across Greater London are non-domestic, and the majority of overseas investors are not willing to forgo rental yields while they hold on for capital appreciation.
The already high rate of domestic purchasing is on an uptrend right now - Greater London's population is approaching 10 million, and potential buyers are coming back to the market in droves as the British economy continues its recovery.