"Frightened Investors Pour Money Into Property" - London Property Market

News in the Times that investors are turning to property rings true across our London estate agents' offices.

We have seen a real (albeit not yet sesimic) trend over the past 10 days of cash buyers offering on smaller one and two bedroom flats. In central London it's experienced, cash rich, buy to let landlords that are leading the way. They've worked out their cash is going to perform better in sensibly priced and located London property than in the stock market. We haven't - yet - seen evidence of investors looking at property for thye first time. With starting prices at around 250 - 300 thousand pounds in central London it's plausible that these buyers may favour provincila town centres where new build flats are now being sold at substantial discounts on a year ago. As much as 50% according to some reports.

One buyer in particular, looking with at flats for sale in Notting Hill is an overseas cash investor from India. With sterling having dropped as much as 20% and more choice of property for sale in London he's looking to invest $3.5M US equivalent in the London market.

Yields on smaller flats to rent in London, as reported elsewhere on this blog, are remarkably resilient. One bedroom flats near good transport links (the tube) are letting near and sometimes even above their 2007 supposed "peak" values, bucking the trend with larger flats and houses to let.