London property demand grows in face of downturn

Demand for property in London has grown due to the popularity of the rental sector, it has been claimed.

Estate agency Foxtons has revealed that an increasing number of people are looking to relocate to the capital and are opting to rent instead of buying due to the credit crunch.

Ed Phillips, lettings director at the firm, revealed that uncertain market had led to caution among potential homebuyers.

He said: "Despite the doom and gloom about the current economy there are still high volumes of people moving to London and relocating here."

"It is sometimes this group of people and others who would have considered buying a property last year but are now waiting to see what happens with the market.

Mr Phillips added: "On average there are have about four to five applicants for each property, so we are seeing things go quickly."

Meanwhile, according to the Primelocation House Price Index for March 2008, asking prices for homes in Central London rose by 3.8 per cent.

UK Property News posted on 07/05/2008 10:13:42