London super-prime props up capital

London's property market looks set to outperform all other UK areas due to the growth in super-prime dwellings, one leading global property consultant has claimed.

Some six out of ten purchases of homes worth more than £4 million are now made by foreign nationals, Knight Frank has revealed, and that demand is only expected to grow in the coming years.

The report will comes as bad news to Londoners looking to get a foot on the housing ladder, though analysts note that the surge in top-end ownership has been accompanied by expansion in the rental market, ensuring a ready supply of tenant properties.

Landlords currently own a total of 2.8 million properties around the country, according to one recent report by Sainsbury's Bank.

"Despite the slowdown in the wider property market, London's super-prime market looks set to lead the UK for at least the next 12 to 18 months," commented Knight Frank partner Ian Marris.

He added that 2008 would be a good year for the market as the British capital is increasingly regarded as the "home of choice" for many in the international community.

News posted on 19th February, 2008