What is the contrast between the UK and London?

A stark contrast is observed in the property market of the UK between the London property market and the rest of the United Kingdom. The gap for prices, buyers and market growth.

The main, and perhaps the defining difference between London is the composition of demand in the real estate market of London is much more foreign buyers. According to the latest data, in 2013 the real estate market of London, 44% of buyers were foreigners. In other parts of the UK, the share of foreigners is only 5 %.

These London areas like Chelsea, South Kensington and Fulham was chosen by foreign buyers from different parts of the globe. The famous street of the rich Knightsbridge is in high interest among buyers from the Middle East. Street Kensington and Notting frail, which had previously been purely English, now also become places of attraction for foreign buyers.

Central London where mainly sold by luxury housing extra class is also subject to injections of foreign capital.

Real estate prices show a clear picture.

According to data provided by Land registry in 2013, the average price of residential property in England and Wales in 2013 increased by 1 % and reached the value of £168000 pounds. At the same time, in London the average price of a residential property against the backdrop of unprecedented pressure from customers amounted to £320,000 pounds, showing an average growth of 6.7% for the year.

It should be noted that contrast in prices between London and the rest of the UK is also due to the behavioral motivation of buyers .

About 52 % of buyers of residential property in London to buy it for his own residence. Other purchases are investments. Or for the purpose of lease, or for the purpose of saving and capital accumulation. However, in the rest of the UK for their personal use buys 87% of real estate. Sector investment property outside London is extremely small and amounts to 4.8%.

One of the main drivers of sales in the London real estate market are financial transactions, for this reason occurs 24 % of sales, while in the country for this reason sell 12 % of real estate. In the capital of the UK, 56% of buyers are looking for an apartment, and throughout the rest of the country people prefer the house .

If you select more contrasting sectors of the market, in Central London, the average price of one property is £ 424965 pounds, and in the North-East of England, where prices over the last 5 years fell by 5.8%, – £152050.

During the global financial crisis, price differentiation only increased. Prices in London and the South-East of the country grew, and the growth in London amounted to about 27.8 per cent, while prices in the rest of the United Kingdom fell amid weak economic data and high unemployment across the country

In 2014, the expected strong price growth for residential property at 7% throughout the UK and in London.

® Alice Morgan 26.02.2014 g.

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