Peter Rollings commenting in response to Land Registry figures showing London house prices have increased by 3% (5% annually)
Tue 07 Jun 2011
"London is defying the dip in house prices elsewhere in the UK.
"The figures show a monthly jump rise of 3% in April but in some prime parts of London, we can confirm they are even higher. Prices in London have gone up by 5% this year and with limited supply and huge demand, we believe this trend will continue. But in Hammersmith & Fulham and Kensington & Chelsea, where Marsh & Parsons have seven offices, the rise is 6%.
"The reason is that there is still a shortage of property on the market, around 50% of its long term average however, although there is a pent up demand building, some potential buyers are still being restrained by the inadequate availability of mortgage finance.
"Today, the CEBR stated that house prices are close to bottom and that London will rise 2% faster than the rest of the UK. That being the case, London represents good value especially for overseas buyers who can leverage the relative weakness of sterling against the dollar and euro."