Real property law

Blog 3: House prices in central London on the rise

The property market is back, the prices have risen by 8 per cent in the six months to September 2009.

A year ago London was suffering on the price crashes in the financial sector. Today London prices are only 1,9 per cent lower than this time last year. This week Knight Frank said it expected London prices to grow by 3 per cent in 2010 while the national average would fall 3 per cent. They said by 2014 that the prices will be 28,6 per cent higher and the national gain 21,5 per cent higher.
But London has a problem, it suffers with an imbalance between supply and demand. Last month the number of buyers in Central London was 30 per cent higher and supply was 20 per cent lower than in September last year.

After the Lehman Brothers collapse the demand was high and properties prices over £10 million dropped almost 20 per cent in the last three months of 2008. By spring had the property of London a very good value, it was attractive for international buyers.

For example, a penthouse flat, very luxuriously decorated and had the best view from the roof terrace. Now the buyer is a European banker and earlier this year it would have been an older buyer who bought it for his children because they were the only persons who had any money. Now everything is changing again.

I think it’s good for everyone that the property market is back on track. Now have younger couples the opportunity to buy a house or an apartment. Before the financial crises only an older couple could buy a penthouse in the city for their children, the people who earned a lot of money could buy everything. Thanks to the rise of the properties and the lower prices is the property market available for everybody in London.



Written by Sofie Lanckriet
3 LP3

Source: http://property.timesonline.co.uk/tol/life_and_style/property/article6875993.ece