My views on London property, cheap money and low interest rates – as well as an influx of foreign cash – have created a massive bubble. Valuation ratios such as prices to incomes are now at historic highs. Last week’s data from land registry and the land registry suggests that London property prices continue to rise higher and higher. Nationwide records that house prices in London rose by 3.3% in July. The only problem with the land registry`s data is that they measure the prices at the time the sales goes through and is recorded. Given the amount of time that passes before the house is signed for, it makes the land registry`s data several months out of date. Data from nationwide also suggests that house prices are still on the rise.
London’s Square Mile
Residential property prices in London’s square mile have increased by a record 71% according to my resources. London is being filled with foreign investors snatching the property prices; obviously they can see the trend and believe that it’s a good investment.
Anna White a property correspondent had this to say “The cost of an average flat in the financial district has risen to £739,546 today from £432,060 in 2008, thanks to residential towers springing up in between the financial institutions and office blocks of the City of London. As a result, the costs of apartments in the City are almost on par with London’s West End, traditionally a more popular place to reside.”
Apartments in the west end part of London have risen from 700 thousand pounds in 2008 to 1.4 million to date. If the trend continues to perform like this then it’s estimated that house prices in the west end will reach a staggering 2.1 million by the year 2020.
For investors or home buyers looking to buy property in London it seems that the docklands market provides the lowest entry prices. With the average price being £338,555 six years ago to £397,135 to this date.
Due to a lack of space and many listed buildings there are only 2,428 new homes in the pipeline in the West End and 1,391 in the City, which will prop up prices, the study found.
London’s property boom definitely not levelling off
A lot of property critics have said that London’s boom is only temporary and house prices will surely level off. With the recent figures which I have mentioned above proves that these theories are incorrect and shows us that house prices are indefinitely on the rise still. A good article about what London will be like in the future. It`s a must read and explains the authors thoughts on the current housing market boom, and what he predicts the capital will be like in the future.
If the London property market trend is something that would like to keep a close eye on over the coming months then you can keep up to date by following this blog trends. The author writes about the current property market situation and also predicts what he thinks the future will be like.
Author Bio: Paul Gray is an experienced property author, he writes about current trends and tries to keep his readers up to date on the latest property information.