London property buyers 'returning to the market'

News Category: Industry News

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The Bank of England's decision to lower interest rates has proved a positive move for the property market in London, it has been suggested.

According to Michael O'Flynn, content editor of FindaProperty.com, the Bank's rate cut will help improve sales, but the impact of the economic downturn on the mortgage industry means there is unlikely to be a surge in new sales.

However, professional landlords, less affected by the credit crunch, might have a good opportunity to add London property to their portfolios.

Mr O'Flynn said: "Lower rates are definitely a positive move and, combined with lower prices and the recent stamp duty changes, they will encourage more buyers back to the market."

His comments come after the Rightmove house price index for October 2008 reported the average asking price for a property in London to be £229,691.

The figure was one per centup on September but 4.9 per cent cheaper compared to October 2007.

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