During almost six weeks of the Olympic and Paralympic Games in London, the amount of people out looking at property fell as many Britons spent time watching sporting events instead.
Research conducted by the Royal Institute of Chartered Surveyors reveals that during the Olympic Games nine per cent more surveyors reported falls in demand, in comparison to four per cent in July, illustrating the fact that Olympics was a genuine distraction for potential buyers.
"Understandably, the amount of people out looking at property fell away slightly," said Ian Perry of the Royal Institute of Chartered Surveyors.
However, with London’s golden summer now a fading memory, more people have turned their attentions back to property resulting in greater activity, particularly in the prime Central London property market.
The latest Cluttons Residential Investment Monitor report reveals that activity in the prime Central London property market has increased significantly since the Olympic Games ended helping to push property values higher.
Cluttons report that average home prices across London increased by 3.1 per cent during the third quarter of this year, after a more modest increase of 0.9 per cent in the second quarter. This healthy growth leaves average property values in prime Central London 3.33 per cent higher than the third quarter of the 2007 market peak and 7.1 per cent higher than the corresponding period last year.
Research conducted by the Royal Institute of Chartered Surveyors reveals that during the Olympic Games nine per cent more surveyors reported falls in demand, in comparison to four per cent in July, illustrating the fact that Olympics was a genuine distraction for potential buyers.
"Understandably, the amount of people out looking at property fell away slightly," said Ian Perry of the Royal Institute of Chartered Surveyors.
However, with London’s golden summer now a fading memory, more people have turned their attentions back to property resulting in greater activity, particularly in the prime Central London property market.
The latest Cluttons Residential Investment Monitor report reveals that activity in the prime Central London property market has increased significantly since the Olympic Games ended helping to push property values higher.
Cluttons report that average home prices across London increased by 3.1 per cent during the third quarter of this year, after a more modest increase of 0.9 per cent in the second quarter. This healthy growth leaves average property values in prime Central London 3.33 per cent higher than the third quarter of the 2007 market peak and 7.1 per cent higher than the corresponding period last year.
Research shows that property for sale in Fitzrovia, Mayfair, Marylebone, Hyde Park, among other prime areas are of particular interest as far as purchasers are concerned.
Demand for flats and houses for sale in Fitzrovia, Mayfair, Marylebone and Hyde Park is particularly high among international purchasers
Investors from India, Western Europe, Russia and other Eastern European countries are increasingly focussing on properties in these areas, illustrating that foreign investors have become the dominant force in the London property market.
"The increase [in prime central London property prices] is the highest in the UK by a very long way, and justifies the interest in prime central London that has been shown by investors from around the world through the thick of the global financial crisis", said Andrew Ellinas of leading estate agents Sandfords.
But despite the hike in property values, prime central London rental values have somewhat stabilised, and in some cases have even dipped, as unemployment and the recent Olympic Games all contributed to a general market slowdown.
The latest analysis from the property adviser Savills shows that small falls were seen in prime central London rents, following a slight decline in demand for property to rent in Fitzrovia, Mayfair, Kensington, along with a host of other highly desirable centrally located areas.
The decline in the volume of people renting was driven by a weakening of economic indicators and the employment outlook in the financial and business services.
Sophie Chick, Savills research analyst, said: "Constrained budgets means tenants are increasingly aware of the cost of space, a trend we believe will continue."
Despite a slight fall in prime London rental demand, most experts expect activity to pick up again now that the UK is moving out of recession.
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