UK Business Property

Smaller homes are most wanted in London.

The most in demand residential property in London at the moment is one and two-bedroom flats and houses.

That is according to Naomi Heaton, chief executive at London Central Portfolio, who revealed that the entry sector of the market remains buzzing.

She noted that one reason for this is that investors have realised it is this market that is currently busy and are snapping up such buildings as they are easier to rent out.

However, "it is also because the increase in prices has forced more people into this bracket who previously might have been able to target larger units," Ms Heaton explained.

In contrast to this, many owners of large properties are holding out for their asking price, which is strangling that particular sector.

Knight Frank recently revealed that the value of prime central London property has risen by 0.6 per cent in September, taking annual growth to more than 11 per cent.

Posted by Suzannah Taylor