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'More stable' prime property performing well in capital
13 May 2008
The prime property market is more stable than the national domestic market, according to an expert.
Naomi Heaton, chief executive of residential property investment company London Central Portfolio, said the capital is weathering the financial storm particularly well.
She explained as prime properties are largely held by long-term owners, mainly as second homes or as rental investments, they do not rely heavily on credit,
This means "repossessions are minimal" and "distressed sales" are unlikely, particularly as these properties are normally held under "well structured" investments or long-term mortgages.
She added: "This means that the market is not being flooded with property, which would suppress prices."
Foxton's estate agent said recently London is still an option for investors as people continue to flock to the city.
Due to the economic downturn, more people are choosing to rent which is raising returns and yields for property owners.
It is reported there are currently more people looking for properties than are available in London.
