Liquid error: wrong number of arguments (2 for 1) Is the London bubble slowly deflating? | Marsh & Parsons Sales and Lettings Estate Agents London

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Is the London bubble slowly deflating?

Sun 29 Dec 2013

Is the London bubble slowly deflating?

After years of breakneck growth, the London property market is showing signs of slowing. Breather or trend?

After several years of breakneck growth, the London property market has recently showed signs of slowing. Is this

a temporary breather, or is the bubble deflating?

Asking prices in London fell 5% in November month to knock 26,956 off the average home, according to figures

from property portal Rightmove.

But the average property in the capital still costs a whopping 517,276 and Rightmove continues to predict a

buoyant 2014.

Estate agency Knight Frank also reported a slowdown in Londons growth rates. It said price growth of 6.8% in the

year to November was sharply down from 10.1% in the year to October.

Global head of residential research Liam Bailey said: In spite of new record prices we are seeing a moderation in

price growth across prime central London, following the very strong performance over recent years.

There is some good news for tenants, with rents hardly growing in the capital since 2011, and even falling a little

lately. But Bailey says this may only offer short-term relief, as demand for rental accommodation remains high.

Estate agency Chesterton Humberts expects the prime London market to grow a total of 48.5% over the next five

years, outstripping national growth of 30%.

Average London house prices are 9.3% above 2008 levels, rising to 40% in Westminster, some 200,000 higher,

according to property specialists Countrywide.

Rapidly gentrifying Hackney has seen the largest increases outside central London, with average house prices

67,000 higher, or 24% above their 2008 peak.

The three eastern boroughs of Newham, Barking & Dagenham, and Havering are now the only parts of London

where house prices are lower than in 2008.

There is little point in buyers holding off in the hope that prices will ease, says Peter Rollings, chief executive at

Marsh & Parsons. With 18 registered buyers per property, sales are completing in record time and for close to

the asking price.

Naomi Heaton, chief executive officer at London Central Portfolio, is confident that prices in prime central London

will continue to increase, as supply dwindles to all-time lows.

If the experts are to be believed, it looks like London is heading for yet another buoyant year.

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