Cash buyers keep central London homes market buoyant

  The central London residential market is less exposed to the mortgage finance drought than the rest of the country, according to estate agent Marsh & Parsons.   The company said that 71% of property purchases in central London in August were made by cash buyers who were unaffected by issues in the lending market.   In contrast to London, the majority of property purchases nationally are made with a mortgage.   Cash buys accounted for just 27% of property purchases in the UK in August.   Marsh & Parsons added that evidence showed there was no slowdown in demand on the cards for prime properties in London, with the proportion of cash buyers there growing during 2010.   Peter Rollings, managing director of Marsh & Parsons, said: “The shortage of mortgage funding on offer is the biggest threat to the recovery in the UK housing market, stifling demand from buyers.   “But, while the market may be starting to run out of steam in some parts of the country, London continues to perform strongly.   “Demand from cash-rich buyers, from both the UK and abroad, looking for strong and safe returns, is buoyant and this is helping to keep activity levels high.   “Central London is, in many respects, insulated from the national mortgage drought.”   nathan.cross@estatesgazette.com   To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.