Cash buyers swoop on London property within days

The shortage of stock in central London means that at least one agent is turning over sales within a week.

Prime London property firm Sandfords says it has seen a surge of activity since the year began, and predicts that bonus and cash-rich buyers, alongside the international set, will continue to shield the capital from any wider UK market downturn in 2011.

Andrew Ellinas, director of Sandfords, said: “Properties in the prime residential roads around the increasingly popular Marylebone High Street and the exclusive Regent’s Park are almost entirely bought by cash-rich buyers.

“The small number who do use finance generally have no problem accessing mortgages at the very best rates and are often tempted to do so in order to boost their investment for little additional cost. Subdued lending levels will therefore have little impact on property prices in prime central London.

“London will also continue to be viewed by international buyers as a safe long-term investment. In the last quarter of 2010, there was a marked increase in the number of buyers from the Euro-zone, keen to shore up their wealth, while the single currency comes under renewed pressure.

“The resurgence of City bonuses has already led to an increase in viewings of properties within a convenient commuting distance of London’s financial districts.

“Despite the Government’s proposals to rein in bonuses, the City is expected to pay £7bn this year, and we expect the property market to be encouraged by this.
 
“In spite of this increasing demand for property, supply remains limited, with property owners in no great rush to sell.

“Demand is such that we are selling some properties before they are advertised and the average length of time a property is on the market is down to just seven days.

“We expect stock levels to remain relatively low this year, helping to underpin prices and further differentiating London from the wider UK market.”