Central London property market retains its allure

Central London property market retains its allure

The recent election of Francois Hollande to the presidency in France has been a hot topic in the political world, but rather surprisingly the new French president has also made an impact on the property market in London. Estate Agents throughout Greater London have commented on a sudden spike in interest in French buyers looking for property in London’s coveted central districts and an increase in enquiries from across the pond. Although London has always been something of a hotspot for the relocating French, this general interest has been amplified as a result of Hollande’s planned wealth taxes that would see high earners paying up to a seventy-five per cent tax rate.

In recent weeks Greek and Spanish buyers have been keen to find bases in the capital away from the Eurozone crisis back home, seeing London properties as a more stable choice. Wealthy Russians have also been prevalent buyers in central London neighbourhoods with their interest in high-end areas long predating any of the recent troubles in Europe.  However, it is not just the buyers from abroad who are attracted to the sights and sounds of the capital city, prime locations in London – Mayfair, Chelsea, and Kensington – have remained in high demand from within Britain even when the rest of the country’s housing markets have faltered.

What is London’s ‘X factor’? What has caused buyers to continue to flock to these particular postcodes? Aside from the current perspective on London from abroad as something of a ‘safe haven’, the view of central London as the location of particularly coveted addresses is one that is longstanding. London, as one of Europe’s largest urban zones, is an important cultural and historical centre, with many art galleries and museums throughout the city and a number of World Heritage Sites. The lifestyle of the inner city is something that is admired and desired, and has even become the focus of television programmes for the British general public. This trend is particularly evident in the so called ‘scripted reality’ of E4’s Made In Chelsea that follows the lives of young socialites in central London.

Mayfair, in particular, has seen something of a resurgence in the past few years, with many of the offices being converted back into houses and flats. It is a prime example of what many people associate with the idea of ‘London living’. Bond Street and Savile Row are known for their wide array of boutiques and shops, many of which are unique to London, while the restaurants in the area seem to accumulate Michelin stars. The inner boroughs are also particularly well situated for the hundreds of city businessmen for whom the ease of commuting to work is a particular draw.

Central London has an enduring charm that has persevered even in difficult financial climates. Though interest from abroad in the housing market has been piqued in recent weeks due to political factors, the enduring popularity of properties in areas such as Mayfair and Knightsbridge is likely to continue. Some estate agents have even commented on a buying ‘fervour’ that has taken hold in recent months. It appears that the centre of London has bucked the downward trend that has gripped many other areas in Britain in the past few years and instead has attracted even more people looking to buy or to rent properties. With London playing host to the Queen’s Diamond Jubilee in June and this year’s Olympics in July, the lustre and appeal of England’s capital city can only be strengthened in the next few months.