Property News > Buying agency sees Prime London as strong long-term investment option

Buying agency sees Prime London as strong long-term investment option

Despite the short-term blip caused by the COVID-19 pandemic, London’s prime property
sector will prove to be a good investment in the long run, according to Fraser Slater, chief
executive of buying agency Ludgrove Property.

London property is becoming increasingly attractive for those from overseas, with the pound currently weak against the US dollar and the cost of taking out a mortgage at record lows.

Fraser said: “Some of the best opportunities will be for bulk buyers seeking new build residential blocks from distressed developers. Indeed, our professional investor clients are
still active, using this as an excellent chance to gain sizeable exposure as we have access to
many off-market properties.

“With physical viewings currently impossible, the Prime Central London market is frozen and minimal transactions will provide scant evidence of where the market is actually trading.

“Low volume markets are notoriously skittish and unreliable, so an accurate reading on
prices may not be possible until well into the second half 2020. We regard any weakness as
a buying opportunity.

“Prime Central London is not immune from the current crisis and some weakness is to be
expected in the short term, but we would regard any sell-off in the coming months as an
excellent long-term buying opportunity.

“The deep and protracted prime Central London bear market that has preceded the
coronavirus-crisis is not the typical backdrop for a sustained fall in price.”

However, the mainstream property market in the capital is less secure, he said, due to its
reliance on first-time buyers who often take advantage of schemes such as Help to Buy. In
addition, first-time buyers are more likely to take out high loan to value mortgages, which are being withdrawn.

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