First-time buyers are almost neck-and-neck with investors in the Prime London property market, according to estate agent Marsh & Parsons’ latest London Property Monitor.
While investors continue to account for the majority of house purchases made across Prime London, this margin has narrowed significantly after a huge spike in first-time buyer sales in the past three months.
Nearly one in three (29%) Prime London property purchases were made by an investor in the three months to March 2015 – falling from 37% at the end of 2014.
At the same time, first-time buyer sales have jumped from just 21% of all purchases last quarter to 28% of activity during Q1 2015. The rise in first-time buyers has caused the number of prime transactions funded by mortgages to jump 17% in the past three months.
Over the past three months, demand for Prime London homes has risen by 20%. As a result, heightened competition for available homes on the market has pushed the ratio of registered buyers per property up from 10 in December 2014 to 12 in March 2014.
Peter Rollings, CEO of Marsh & Parsons, comments: “First-time buyers have been riding a wave of fortuitous circumstances recently – with almost unheard of mortgage rates, reduced up-front stamp duty costs, and support schemes like the Help to Buy ISA inflating confidence. Combined with a more accessible pace of property price growth so far in 2015, many more have been able to take the plunge into the property market. Prime London property has always been a bastion of investment, but it’s encouraging to see the drawbridge being lowered for everyday Londoners who live and work in this city.
“However, 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.”
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