LONDON PROPERTY MARKET SLOWING DOWN

THE London property market may be slowing down but experts are predicting a surge of demand in the commuter belt, including the South West.

Turnover in the capital has flattened out because of high prices, a shortage of properties and low mortgage availability. The lure of Mayfair, Belgravia, Chelsea and Kensington to foreign investors has created a classic “ripple effect” with Londoners moving further out to seek better value for their money.

As confidence improves, buyers are looking to markets beyond London that offer relative value. This will be buoyed by the second phase of the Help to Buy scheme, where part of the mortgage is guaranteed by the Government to reduce risk for lenders, increasing the availability of 95 per cent loan–to–value mortgages.

The South West is expected to see an average house price rise of 29.4 per cent over the next five years with Bournemouth set to see average prices increase by almost a third by 2018.

DOMVS: 17th Jan 2014 11:30:00