London property prices set to rise
26th Oct 2011
House prices for property in London are set to rise in the coming year, before levelling off, according to the latest industry report.
Research carried out by Knight Frank suggests that prime central London prices will climb five per cent next year, before pausing in 2013 and rising by a further four per cent in 2014.
According to the organisation, geo-political issues will continue to push overseas buyers into London, especially at the top end of the market, as the capital is seen as a safe investment zone.
The prime central London property market is also set to remain de-coupled from the rest of the UK market, the data suggests.
Liam Bailey, head of research at Knight Frank, noted that prices in prime central London are currently at an all-time high, though he believes there is scope for further price gains over the next 12 months.
"The reasons which have underpinned recent growth, a weak pound, renewed wealth creation in emerging markets, the search for safe-haven assets and flight capital – all seem set to continue at least in the short term reinforcing our positive view for next year," he added.
It follows the publication of the latest Quarterly Economic Bulletin by the Intermediary Mortgage Lenders Association, which found that the regional variation in house prices continued to widen as London prices are up 2.1 per cent on the year, whereas those in the north-east region were down 7.8 per cent.
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