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Prime London Property Will See Growth In 2012
The prime London property market looks set to see "very modest growth" in the months ahead, in spite of economic pressures, it has been claimed.
Lucian Cook, director of residential research at Savills, forecast a slow rise in house prices in prime areas in the capital, largely on the back of a continuation of overseas wealth coming into the markets.
His comments came after figures from the Land Registry, released on December 30th, showed that property prices in London increased by 0.8 per cent in November.
The only region in England and Wales to experience an increase in its average property value over the last 12 months was London, with a movement of 1.4 per cent.
Mr Cook said the pressure on employment and on earnings in the financial and business services sector could temper growth, which could mean some price falls in markets that are particularly reliant upon domestic buyers.
However, even within those markets there is an "awful lot of equity" stored up, the expert explained.
He added: "Given that the UK has also got very low interest rates, we don't expect to see significant levels of stock brought on to the market to drag prices down significantly."
