Estate agents report increase in activity and demand in UK property market | Europe | News

Estate agents report increase in activity and demand in UK property market | Europe | News

Activity in the residential property market in the UK has surged following the winter slowdown with buyer demand increasing especially in central London where quality homes are being snapped up, it is claimed.

The latest quarterly review from Winkworth, a leading franchisor of real estate agencies, says registrations increase 90% between December and January and property stock levels have been boosted by an injection of new properties in January and February.

And it reports strong demand in central London where quality properties are being snapped up above the asking price before the details have even been released. Buyers from the Middle East make up 20% of foreign buyers in prime central London, up from 12%.

Even the market outside London is beginning to thaw with demand increasing and sales agreed recovering well after the winter hiatus.

It also found that more rental properties are coming onto the market as landlords grow their portfolios to take advantage of strong demand. Rents are still rising and average rent across the UK now stands at £2,126 per month. Average rents outside London are £972 per month while rents in prime central London currently are £4,016 per month.

Overall outlook for sales market in 2011 is flat, but prime areas and large family homes will continue to see price growth as demand outstrips supply, the report concludes.