Continued London property growth 'is logical'
29th Jun 2012
Continued growth in London's property market is "logical", according to one sector analyst, though he does not expect price growth in greater London to significantly outperform the national average.
Liam Bailey, head of residential research at Knight Frank, made the comments after Savills reported on June 27th that London's prime residential values rose by an average of 0.9 per cent in the second quarter of 2012.
At 6.0 per cent, annual price growth was at its lowest level since September 2009, the date shows.
Mr Bailey said that London has "certainly" done better than everywhere else over the last two or three years and theorised that the main driver has been the fact that London's economy has improved much more quickly than the rest of the country.
"It is much more resilient, so I think that the [continued] performance of London is a logical forecast. However, I think that greater London will only marginally outperform the UK in the next couple of years – I don't think it will be significant," he added.
Central London has been "much better", as there have been some foreign investments, but Mr Bailey said the mainstream greater London market probably is not as "robust" as that in the centre.
Posted by Staff Writer: Frances McDonald
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