London home-owners are selling their premium properties to free-up savings, according to new research.
Four in 10 sellers in London put their homes on the market in order to release their investments in the first quarter of this year, making this the most prominent motivation behind selling up.
Just under one third (29 per cent) of those selling property in London did so to move to a bigger home, while one in five (19 per cent) plan to relocate once they find a buyer, according to Marsh & Parsons.
Around half of those selling in central London, where average house prices are higher and often incur the top rate of Stamp Duty, said releasing investments was their main reason. Downsizing was also more popular, with one in ten intending to either move to a smaller home or relocate.
Three per cent of central London homes were sold due to divorce.
Marsh & Parsons chief executive David Brown said: "in Prime Central areas, there is much greater appetite to downsize and relocate elsewhere – to circumvent the more stringent Stamp Duty levy, which they will have to pay as a buyer on their next purchase."
A much higher proportion of sellers want to upsize in outer prime London areas.I n areas such as Balham, Battersea, Queen’s Park, East Sheen and Clapham, 34 per cent of those selling planned to move to a bigger home after finding a buyer.