Cash-rich investors boost London market

Contrary to recent reports of a glut of property forcing house prices down, the central London market paints a very different picture.

Andrew Ellinas, director of Sandfords, comments, "Transaction levels are up 25% on last year with prices standing firm as the supply of good quality homes remains limited. Buyer enquiries have also seen a 20% increase compared to last summer for property in prime pockets of Regent's Park and Marylebone, despite stock levels staying consistent. This increased competition is responsible for supporting sale prices of properties accurately marketed.

"With London now set to become the home of the new European banking watchdog, confirming the City's status as the hub of the global financial markets and attracting more financial sector workers and investment, we are likely to see increased competition for good quality homes. This will push up prices for central London property, further differentiating London from the wider UK market."