A fund is to be launched that will look to exploit the downturn in the housing market by buying cheap homes and residential developments in London. Financial Times

Nice Capital, a boutique property manager, is to set up a fund that will invest in houses that can be refurbished and let to a number of residents and in development sites across central London.

The company believes it will be able to pick up bargain prices in areas that offer good medium-term investment opportunities in spite of the widespread losses being predicted for the market over the next year. The fund has a return horizon of five to seven years.

'It is the perfect time to look to buy houses in London as there are huge discounts already available,' said Martin Skinner, the chief executive of Nice who has a dotcom background and founded the company in 2003. It has about £200m under management.