London's prime property market is 'more stable'

12 May 2008

London's prime property market has established more stability in recent months compared to the national domestic market, it has been claimed.

London's prime central market is self-regulating, making the market considerably more stable than that of the national domestic market according to London Central Portlio.

Prime properties in the capital are, on the most part, held by long-term owners as rental investments or as second homes, Naomi Heaton, chief executive of the company, pointed out. They are unified by a low reliance on credit, she explained.

"Low loan to value ratios in well structured investments and long-term mortgages that have largely been paid-off mean that repossessions are minimal and distressed sales are few and far between," she said.

In this way, the market is not flooded with property meaning that prices are not suppressed.

According to Savills, the prime property market fared better than the rest of the UK market, as it experienced a two per cent fall in values.

When moving into a prime market property, be sure to invest in a good self-storage system.


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