Press Release: London property prices will rise between 5% and 7% in 2010
Mon 14 Dec 2009
- London property prices will rise between 5% and 7% in 2010
- Large increase in homes for sale in 2010 will help satisfy huge buyer demand
- London will continue to be the city of choice for investors and overseas buyers
The London property market will continue to bounce back strongly in 2010, despite the potential for further market turbulence in other parts of the UK, according to estate agent Marsh & Parsons. A large increase in the number of London homeowners putting their homes up for sale in the early part of 2010 - continuing the trend of recent months -will help satisfy the enormous buyer demand in the capital, which will boost transactions and lead to a more sustainable rate of house price growth. London house prices will rise between 5% and 7% in 2010.Peter Rollings, managing director of Marsh & Parsons, commented: "The UKs house price recovery started in London in spring 2009 and price growth in the capital has continued to outstrip other parts of the country over the course of the year. In the second half of 2009, the sharp rise in London prices was underpinned by a severe shortage of supply, but weve seen a dramatic shift recently. The number of homes being put on the market for sale is rising fast and we anticipate this trend continuing well into the New Year. This will help to bring a greater balance between supply and demand and lead to more sustainable house price growth."
The latest available house price figures from the Land Registry show that since the low point for house prices in April 2009, property prices in prime central London locations such as Kensington & Chelsea and Westminster have risen 11% and 13% respectively. By contrast, average prices have increased just 4% nationally over the same period. The number of properties being put up for sale has shown a steady year-on-year increase every month since July 2009, and in November 2009, the number of instructions received by Marsh & Parsons was 60% higher than in November 2008.
In 2010, London will continue to be the place to invest and "city of choice" for UK and overseas buyers. There has been a huge increase in the number of international buyers in the past year, with the biggest increases in interest from Italy (+212%) and Hong Kong (+165%). Buy-to-let is also back in fashion as investors seek other sectors to invest their money. In the capital, Notting Hill and Clapham remain popular areas for investors looking to benefit from a healthy income and reliable capital appreciation.
Peter Rollings said: "There are plentiful buyers looking for blue chip, central London property and vendors of properties that tick all the boxes may see a premium. But properties will need to be competitively priced as investors are keen but not foolish!"
There are signs of the debt market re-opening with better lending and attractive interest rates, and this will provide a further boost to the property market in 2010.
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For further information please contact:
The Wriglesworth Consultancy Tom Urpeth / James Staunton 0207 427 1440 / 0207 427 1400
Marsh & Parsons has been part of the London property scene since 1856. The sales and lettings agent has 14 offices situated in prime positions across central, west and south London. They have an intimate and extensive knowledge of the area.
Marsh & Parsons are an independent and professional firm with a 'can-do' attitude covering all aspects of residential property. They aim to establish individual relationships with clients through a business built on energy, agility, professionalism and knowledge. Their business aim is to be the agent who not only understands the local area around their offices better than any other agent, but also to be at the heart of the community.