Attractively low mortgage borrowing rates has led to a rise in the number of home buyers searching for a house or apartment for sale in Little Venice, St John’s Wood, Primrose Hill, Marylebone, among a host of other desirable locations in the English capital.

1. High buyer demand on the back of low mortgage rates
Many property experts project that residential prices in the capital will rise in the short to
medium term, on the back of low mortgage borrowing rates and a rise in the number of
international buyers looking to acquire property in London, widely considered to be the
ultimate safe haven market.
Mortgage borrowing rates have fallen sharply in recent week, with some two-year fixed rate
deals starting from as low as 1.99 per cent, on the back of the Bank of England’s Funding for
Lending Scheme, which was introduced last year.
There are growing signs that government efforts to boost mortgage lending are trickling
down to people with smaller deposits, reflected by the fact that there has been a sharp rise in
the number of first time buyers.
November’s mortgage lending data from the Council of Mortgage Lenders (CML) shows that
the volume of first-time buyers increased by 24 per cent year-on-year, with a total of 21,700
loans advanced to first-time buyers, worth £2.7 billion, in November, marking one of the
highest monthly totals seen in the past three years.
For the second consecutive month, first-time buyer loans accounted for 41 per cent of all
home purchase loans, compared with the longer-term average of 38 per cent.
“Encouraging activity in the first-time buyer sector in November contributed to an uplift in
house purchase lending, suggesting the underlying trend for year-on-year increases should
continue,” said Paul Smee, director-general a CML.
Attractively low mortgage borrowing rates has led to a rise in the number of home buyers
searching for a house or apartment for sale in Little Venice, St John’s Wood, Primrose
Hill, Marylebone, among a host of other desirable locations in the English capital.
“All these areas have seen surging prices over the last year,” said Andrew Ellinas of leading
estate agents Sandfords.
He added: “The best houses and apartments in these
areas now represent a safe and secure place to store
funds as well as a base in some of the loveliest areas
in the most vibrant, cultured and cosmopolitan city on
earth.”
Whether talking to Mayfair estate agents or
Marylebone estate agents, or any agent in a sought-
after part of London for that matter, they will all agree
that London is proving a wealth magnet thanks to its
safe haven status.
London’s political and relative economic stability has helped to attract a high number of
overseas property investors in recent years, as they seek to preserve wealth in light of
political, economic and financial upheaval in their home nations, helping to push property
prices higher.

2. Yet, despite the surge in London property values, the weak pound, ironically, has actually
made acquiring property in London relatively cheaper for some foreign buyers, particularly
those from Asia.
Shirley Humphrey of Harrods Estates said: “The prime central London residential market is as
popular as ever with international investors. While interest from Russian and Middle Eastern
investors remains strong, increasingly, buyers from Hong Kong and Singapore are making a
significant impact.”
Wealthy overseas buyers generally look to buy property in some of London’s most exclusive
areas, which explains why so many look at property for sale in Fitzrovia, Chelsea, Mayfair,
Hyde Park, among other desirable districts.
International purchasers, especially those from Asia,
are particularly interested in acquiring new build homes
in the capital.
Trish Henderson, Sales and Marketing Director, of Taylor
Wimpey Central London, said: “Investors from the Far
East, in particular Singapore and Hong Kong, have been
key drivers in the prime London new build residential
market. These buyers are looking for solid investment
properties, but more and more, properties in areas that
offer a great range of lifestyle and education options for
their families.
As we start the new year confidence to the residential
property market appears to be improving, helped in part by low mortgage rates. Many
housing experts predict that transaction levels will continue to increase in many parts of the
country and this in turn could lead to significant capital growth.