Henley on Thames - Business - Prime residential property market buoyant in 2010

Henley on Thames - Business - Prime residential property market buoyant in 2010

THE prime residential market performed strongly throughout 2010, according to Savills.

According to the latest figures, the Residential Transaction Advisory business increased revenue by 22 per cent to £86.8m (2009: £71.3m) primarily as a result of a strong performance from the London and Home Counties markets. The level of activity in London continued to be significantly influenced by overseas buyers, for whom London’s market transparency, liquidity and political stability represented an attractive investment destination.

In the broader prime market the availability of mortgage finance remained a significant obstacle for buyers and transaction volumes reflected this. With the values of the best prime central London properties having regained peak levels, as anticipated after strong gains since 2009, there was a somewhat slower market in the second half of 2010.

The prime London postcodes continue to be in demand and they expect that much of the broader prime UK market will remain somewhat slow through the first half of 2011, but should regain momentum thereafter. Although it is too early to forecast their impact with certainty, the current pace of global political and economic change represents both opportunity and risk to this view.