International buyers are the driving force behind the real estate sector in London, one expert has claimed. Head of investment management at London Central Portfolio Hugh Best explained that many owners of property in prime regions of the capital are from overseas and have not had to rely on a mortgage to finance their purchases.
As a result, they can buy or sell at any time - but with stock on the market currently in short supply, he noted that many are not prepared to offload an asset that is performing well. "They are seeing good capital growth and consistent rental income in a good rental market and they don't know where [else] to park their cash," Mr Best added.
The most recent Hometrack report found that average property prices in London and East Anglia rose by 0.3 per cent in July compared to June, despite many other parts of the UK experiencing a decrease in real estate values. Mr Best pointed out that many investors with a prime central London property consider it to be an investment and in the current market, such lucrative assets are not worth offloading.