London buyers may benefit from less fierce competition

Posted: 13 Jan 2009 11:36:27 GMT

The weakening of the pound has led to recent reports that properties in London will come under greater demand from international investors, pushing prices back up once more.

However, Marc Cogliatti, currency strategist at HiFX, has since argued that such a phenomenon - which could have sidelined local buyers - may not surface quite so soon after all.

Recent confidence in the pound could instead see overseas investors think twice before snapping up deals in London.

"The reaction in GBP has been broadly positive as the market is relieved that a more aggressive cut was not deemed to be required just yet," he said.

"GBP/EUR is now ten cents higher at €1.12 [to the pound], from the lows below 1.02 seen in December."

For those hoping to find a property at the lowest price, viewing homes online could be useful, as buyers could find a greater selection of homes than in traditional estate agents.



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