Gap widening between supply and demand in UK capital

The success of the London property market over the last few years has enabled some well-established homeowners to move on up the property ladder without first selling their current home.

Several major property chains working in the city have noticed a new breed of house hunter on the scene and whose arrival signals a tightening of the already short supply of residential London properties.

The new buyers are homeowners who reside in areas of the capital that have seen vast growth in the value of their homes over the last couple of years and have taken the opportunity presented by the low interest rates offered by the majority of UK mortgages to overpay their home loan and massively increasing their equity stake – thereby giving them the opportunity to invest in another dwelling and renting out their former home for another source of income.

This results in fewer properties coming on the market to satisfy the demand from both domestic and overseas buyers.