International mortgage market impacts London property industry

Tue, 26 Jul 2011
The international mortgage market might have an impact on the success of London's property industry, it has been suggested.

According to London Central Portfolio, the performance of overseas economies and the number of properties for sale in foreign destinations has an impact on the health of the capital's housing trade.

Head of investment management Hugh Best said: "The central London market is not mortgage-dependent; it is dependent on the international market and how many people need or want to sell at any given time, and at the moment the number of vendors is very low."

The expert added that the lack of new homes coming up for sale is a result of the rental yields international investors are seeing on their prime London properties.

"Vendors are reluctant to sell because their assets are performing well - they are seeing good capital growth and consistent rental income in a good rental market and they don't know where to park their cash," he noted.

Meanwhile, the latest data from Hometrack revealed that the typical property price in England and Wales dropped by 0.1 per cent in July, despite a 0.3 per cent rise in London.
 
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