The Eurozone crisis has continued to boost international demand for houses and flats to rent in Fitzrovia, Mayfair, Hyde Park, among a host of other prime central London locations.
The fact that London is generally viewed as a 'safe haven' amid the economic turmoil in the Eurozone means that more people are moving to the capital in order to escape the calamity and preserve their wealth.
But while many foreigners may prefer to buy property in London, the general shortage of homes on the sales market is forcing them to rent property instead.
"We have reached the point of no return for the housing market," said Gemma Duggan of the National Housing Federation. "Successive governments have failed to tackle the under-supply of housing and time is now running out."
But while many foreigners may prefer to buy property in London, the general shortage of homes on the sales market is forcing them to rent property instead.
"We have reached the point of no return for the housing market," said Gemma Duggan of the National Housing Federation. "Successive governments have failed to tackle the under-supply of housing and time is now running out."
A quick online search for a house for sale in Little Venice, for example, a west London district a short distance from Marylebone, which is generally popular with international homebuyers, shows that there are very few houses currently on the market in the area. Consequently, many people looking to buy a home in the area will have to opt for rented accommodation until more houses become available.
The shortage of properties for sale also reflects a sharp rise in the volume of people snapping up homes in prime central London.
According to estate agency WA Ellis, there was a 36 per cent rise in the number of property transactions in prime central London from September to October.
Tim des Forges, partner in residential sales at WA Ellis, said: "The first week of half term was unprecedented, and is perhaps now bringing in buyers who avoided London during the summer's events. This is illustrated by the total numbers of sales in prime central London in October, which is up by 35.81 per cent on September."
The company's letting division has also been rather busy, particular when it comes to letting homes in the £1,000-£3,000 per week bracket and more tenants are staying for longer; the average tenancy now stands at around three years, according to WA Ellis.
"These tenants are seeking two or three bedroom properties in Prime Central London, and any property that presents well is letting quickly," said WA Ellis' Lucy Morton.
Not only are more people now required to live in rented accommodation, but the resulting shortage of homes for sale means that property prices in prime central London are rising.
The latest Knight Frank Prime Central London Index shows that the average price of a home in the region appreciated by 0.8 per cent in October compared to the previous month, pushing annual growth to 10.1 per cent. Prices are now 52 per cent higher than in March 2009.
"Our analysis of market activity confirms that average prices have climbed 10.1 per cent over the past year, with flats [11.1 per cent] outperforming houses [8.4 per cent] in terms of growth, said Liam bailey of Knight Frank.
Among the areas performing particularly well in terms of price appreciation is Marylebone, which has seen a growth over the past year of 14.5 per cent – the highest annual rise of all areas covered by the index.
Property prices in Marylebone are rising on the back of a general shortage of properties for sale in the area in relation to high demand. But with many people wanting to live in the area, more people are now prepared to consider looking at a house or flat to rent in Marylebone.
The shortage of properties for sale also reflects a sharp rise in the volume of people snapping up homes in prime central London.
According to estate agency WA Ellis, there was a 36 per cent rise in the number of property transactions in prime central London from September to October.
Tim des Forges, partner in residential sales at WA Ellis, said: "The first week of half term was unprecedented, and is perhaps now bringing in buyers who avoided London during the summer's events. This is illustrated by the total numbers of sales in prime central London in October, which is up by 35.81 per cent on September."
The company's letting division has also been rather busy, particular when it comes to letting homes in the £1,000-£3,000 per week bracket and more tenants are staying for longer; the average tenancy now stands at around three years, according to WA Ellis.
"These tenants are seeking two or three bedroom properties in Prime Central London, and any property that presents well is letting quickly," said WA Ellis' Lucy Morton.
Not only are more people now required to live in rented accommodation, but the resulting shortage of homes for sale means that property prices in prime central London are rising.
The latest Knight Frank Prime Central London Index shows that the average price of a home in the region appreciated by 0.8 per cent in October compared to the previous month, pushing annual growth to 10.1 per cent. Prices are now 52 per cent higher than in March 2009.
"Our analysis of market activity confirms that average prices have climbed 10.1 per cent over the past year, with flats [11.1 per cent] outperforming houses [8.4 per cent] in terms of growth, said Liam bailey of Knight Frank.
Among the areas performing particularly well in terms of price appreciation is Marylebone, which has seen a growth over the past year of 14.5 per cent – the highest annual rise of all areas covered by the index.
Property prices in Marylebone are rising on the back of a general shortage of properties for sale in the area in relation to high demand. But with many people wanting to live in the area, more people are now prepared to consider looking at a house or flat to rent in Marylebone.
Andrew Ellinas of leading estate agency Sandfords said: "Marylebone, with its wealth of elegant properties and desirable High Street, has been attracting affluent buyers for a number of years. Demand for properties priced between £1.5 and £4million is intense."
With demand for housing in prime central London expected to continue to rise, very few people would bet against further capital growth and rental price rises moving forward over the next few years.
With demand for housing in prime central London expected to continue to rise, very few people would bet against further capital growth and rental price rises moving forward over the next few years.
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