Flight from eurozone fuels property boom
French and Italian buyers are looking for a bolt-hole in the London property market as wealthy foreigners flee Europe's debt crisis, estate agent Winkworth said today.
European buyers now account for nearly a third of overseas interest in the capital's housing market, with investors from France - facing the loss of its AAA rating - and debt-laden Italy making up the largest share.
"These proportions could increase in 2012 if the eurozone crisis is not resolved, the euro falls and investors try to find shelter from the economic storm," it added.
China is also moving money into top-end London property, with its share of buyers up to 25% from 20% in August.
The demand helped prime central London houses to defy the stagnation across the wider housing market, with the agent reporting average selling prices up 8.4% in the three months to November. With a lack of quality homes on the market constricting supply, average asking prices are closing in on £1.1 million, Winkworth said.
Chief executive Dominic Agace said: "The London prime family house market has been well bid all year and, after steady price increases, we expect to see it higher again by the end of 2012."
