Mon 07 Feb 2011
I had an interesting conversation with a wealthy and successful acquaintance last week who has always insisted on renting in London as 'the market will undoubtedly crash'. He has always felt that as he works in the City, he really has his finger on the pulse. Two years ago as we hit the bottom in London I once again advised him to buy as London was looking great value compared to other world and European cities. Needless to say, he didnt take my advice.
Well Im pleased to say that last week he eventually admitted to me that he wished he had taken my advice and that he was now looking to buy. I must admit to a feeling of 'I told you so' but I managed to restrain myself!In much the same vein, I spoke to a journalist last week who was incredulous that prices in parts of London had risen to and above their 2007 'historic highs'. Why so surprised I asked? In my 25 years there have been many 'historic highs' in the market and I suspect that there will be many more assuming that London retains its place as the premier city for business in the world.
London you see is unlike any other market in the UK and the commentators who lump it in to the wider 'UK property market' do so at their peril. The latest figures from Land Registry (which I have advocated for a long time are the only ones worth looking at), bear out what I am saying with the best and most popular parts of our capital showing the highest gains.
The only surprise in my mind is why others are so surprised.