Market activity in central London prime market 'set to increase'

Monday, 12, Jul 2010 12:00

The property market in central London is likely to see an increase in activity, according to one expert.

Many investors in prime property - that valued at over £1 million - stepped away from the market temporarily due to uncertainty over the general election and its affect on interest rates and market confidence, according to Naomi Heaton, chief executive of London Central Portfolio.

However, they are now coming back to the table as concerns over the tax status of non-resident and non-domiciled investors proved unfounded.

UK-based investors were also boosted by the fact that capital gains tax was not raised by as much as had been feared - all of which will lead to more market activity, Ms Heaton believes.

"It should also be taken into account that transaction levels in London central have not got back to their average levels so increased levels of activity can be predicted, driving up prices," she concluded.

There are currently 131,996 residential homes worth over £1 million in Britain compared to 26,776 ten years ago, according to research from Santander.