Peter Rollings commenting in response to the latest Land Registry data
Tue 28 Jun 2011
"London continues to buck the trend of a rather gloomy national property market, and has been the only area to register consistent sale price rises in the past year. The lack of mortgage finance for first-time buyers has been creating a bottleneck for house purchases and price rises across most of the UK and whilst London is not totally immune from this problem, it has been much less heavily affected. In prime parts of the Capital, buyers are a healthy mixture of cash investors and those with hefty deposits immune to the ongoing mortgage draught. As a result, competition for each home has actually climbed to a level not seen since 2007. With stock on the market still limited, prime prices keep climbing an increase rippling out to the rest of London market. In Kensington and Chelsea alone, sales prices rose by 6.2% - twice the average growth for Londons market. That being the case, London represents excellent value for those looking to invest - especially for overseas buyers who can exploit the relative weakness of sterling against the dollar and euro."