Property market in Britain immune to crisis


It may come as quite a shock to many but the property market in London, and in fact the rest of the UK also, has proved surprisingly resilient to the on-going financial crisis. It would seem that London is completely unaware that there is a vast global financial crisis crippling property markets around the world.

Owners of houses and flats for sale or for rent are demanding more and more and the top end of the market is kept buoyant by the fact that around a fifth of properties worth more than six million pounds are owned by Russian Oligarchs.

Asking price sets a new record

In London, the asking price has gone through the roof, now standing at an all-time record of £486,890. That’s even higher than last year’s record of £483,709.

London’s new record asking price is up from £480,890 last month, and an astonishing 8.4% up from the £449,252 recorded this time last year.

Average people having trouble buying properties

Buying an apartment or house in the UK is more and more difficult for those who live on normal wages, which has been exacerbated by the fact that new property construction has fallen to a level not seen for several decades.

Existing properties are more expensive to purchase or rent, so it is almost impossible for young people to buy their first home.

"For a house in the suburbs Peckham, the price is about 300,000 pounds. It's hard to find the money for the deposit that the owner requested, and that is 60,000 pounds. It is much more than what the banks are looking for, "says first time buyer Kathy John.

The bad news for people looking to get on the property ladder is that all forecasts point to the number of Britons who will buy their own apartment or house being the lowest for the last 20 years.

Unreachable property

One of the reasons for the continued upward drive of high-end property in London is that with the current shaky global financial markets the property market in London is seen as a safe-haven for investors.

Oil sheiks, rich Russians and increasingly Chinese millionaires are investing more into property and are increasing choosing London as the place of their investment. Jelena Baturina, Russia's richest woman and wife of the former Moscow Mayor purchased one of the most expensive houses, with a starting price of 50 million pounds.

"And in the time of crisis, the virgin rich people from Middle East and developing countries, flew into London, because of the security and development of its real estate market," said analyst Mike Bessel.

With prices only going one way, it’s never been more important to get onto the market as soon as possible.