Investors now account for almost a third of buyers in prime central London according to one of the capital’s largest chains, Marsh & Parsons.
The agency’s figures shows that 29 per cent of prime London property purchases were made by investors in the three months to the end of March 2015, and although this is down from 37 per cent in the previous quarter it is still ahead of first time buyer numbers.
Over the past three months, demand for prime London homes has risen by 20 per cent claims the agency - a view that contrasts with some agents who say the market in the capital is muted ahead of the general election.
“There is, and has always been, some aspirational prime central areas that are out of grasp for new buyers, and will remain an investment stronghold. Addresses like Kensington and Chelsea resonate around the world, and will forever entice buyers looking for unparalleled capital returns” says Marsh & Parsons chief excutive Peter Rollings.
However, he says continued low mortgage rates, reduced up-front stamp duty costs and support schemes like Help to Buy are “inflating confidence” amongst first time buyers in prime areas, who in the last quarter accounted for 28 per cent of purchases.
Meanwhile Marsh & Parsons is this week opening a new branch at Queen’s Park in north west London - the redesign of the building into which it is moving has cost £200,000 says the firm. It is its second new branch of the year - the last was in Shoreditch.