The residential property market in prime central London remains strong, with prices having appreciated significantly across many parts of the region so far this year, with rental values also rising, due to high demand and low housing supply.
As sales prices continue to increase, it is getting harder for would-be homebuyers to secure finance to buy property in central London, forcing many people into rental accommodation instead, pushing rental values higher in the process.
Robert Bartlett, Chesterton Humberts' CEO, says: "The prime London residential lettings market is facing a variety of challenges this year and in spite of the ongoing economic gloom, overall rents are continuing to increase. Good quality rental properties are being let at record prices and in record time."
One area where the housing market is going from strength to strength is Fitzrovia, near London's West End, which is home to an array of upmarket properties and various celebrities.
As sales prices continue to increase, it is getting harder for would-be homebuyers to secure finance to buy property in central London, forcing many people into rental accommodation instead, pushing rental values higher in the process.
Robert Bartlett, Chesterton Humberts' CEO, says: "The prime London residential lettings market is facing a variety of challenges this year and in spite of the ongoing economic gloom, overall rents are continuing to increase. Good quality rental properties are being let at record prices and in record time."
One area where the housing market is going from strength to strength is Fitzrovia, near London's West End, which is home to an array of upmarket properties and various celebrities.
A limited supply of houses and flats for sale in Fitzrovia, in stark contrast to a high level of demand, has pushed property prices higher in the area, driven primarily by a growing influx of overseas buyers.
"The London property market continues to be seen as a safe haven in turbulent economic times, with record numbers of properties being sold to international buyers," said Ed Mead, sales director, Douglas & Gordon.
Demand is also being fuelled by more property investors looking to add to their property portfolios, thanks to the fact that many people are looking at property to rent in Fitzrovia, thanks to its close proximity to London's West End, along with a wide selection of local attractions and amenities.
Andrew Ellinas, director of Sandfords, says that the "the Fitzrovia lifestyle" appeals to many people attracted to "art galleries enthused with vibrant bars, outstanding restaurants, famous landmarks like the BT Tower, the open spaces of Regents Park and the fashionable boutiques of Marylebone High Street".
Whether flats or houses to rent in Fitzrovia, good quality properties rarely stay on the market very long, as tenants snap them up amid fierce competition for sought-after homes in the area. This is creating a severe supply-demand imbalance that is unlikely to change until more new homes are developed, in light of London's rising population.
The Institute for Public Policy Research (IPPR) reports that England is facing a "growing housing crisis", with an estimated shortfall of 750,000 homes by 2025.
Nationally, the think tank says that up to 280,000 new homes are required each year over the next 16 years, with the biggest requirement in London, particularly popular areas like Fitzrovia.
Unless property supply increases in the near future property prices and rents are likely to rise further, regardless of the state of the economy, as housing remains a necessity that we all require.
"Whether the economy performs well or poorly, a serious gap looms between housing supply and demand," said IPPR director Nick Pearce. "Our ageing population and rising expectations for living standards are going to drive up demand, but if there is no change in housing policy it will seriously hold back supply."
Nationally, the think tank says that up to 280,000 new homes are required each year over the next 16 years, with the biggest requirement in London, particularly popular areas like Fitzrovia.
Unless property supply increases in the near future property prices and rents are likely to rise further, regardless of the state of the economy, as housing remains a necessity that we all require.
"Whether the economy performs well or poorly, a serious gap looms between housing supply and demand," said IPPR director Nick Pearce. "Our ageing population and rising expectations for living standards are going to drive up demand, but if there is no change in housing policy it will seriously hold back supply."
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