A growing number of investors are using cash to buy property in central London as mortgages become more difficult to get hold of, a local consultancy has claimed.
Naomi Heaton, chief executive at London Central Portfolio, has explained that the shortage of houses available for sale in central London has led to non-cash buyers missing out on property deals because they cannot move as quickly as those with readily available cash.
"Many properties are going under offer within days, if not hours, so only buyers offering cash can get a look in. Currently cash is the most potent negotiating tool in the marketplace – cash is king," she said.
However, simply acquiring real estate in central London is still considered to be a challenge, as stock levels remain "very tight" and the number of concluded transactions around 20 per cent lower than the average.
The consultant's comments come after it was revealed that the percentage of people buying West End property with cash increased from 66 per cent in the last quarter of 2009 to 88 per cent in the last three months of 2010.