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Fringe prime locations are desirable for property owners

26 Jan 2012

Many people are struggling to become property owners in London due to excessive prices are casting their net into "fringe prime" locations, according to Savills.

Lucian Cook, director of residential research at the real estate service provider, has suggested that many property seekers are priced out of buying property in the capital and are looking further afield.

Both rents and property prices in the city are expensive for many and as such rent guarantee insurance is recommended for many landlords, with Mr Cook also suggesting that some London-dwellers are simply putting off house purchases.

Mr Cook said: "The people who are not on the housing ladder are perhaps more likely to stay in good quality private rented accommodation for longer.

"I don't think the result is that they are going to move in any significant numbers. If they do, then the furthest I think they will move is to fringe prime."

Santander recently reported that eight per cent of Britons (3.7 million) believe they are likely to successfully purchase a new home in 2012.

Posted by Michael Brown