The London market is giving reasons to be cheerful, argues Guy Garrard, head of business development at Tiuta
Property within the Greater London area, both residential and commercial, often tends to ‘buck the trend’ when it comes to comparisons with the rest of the country. Of course this can be negative as well as positive but generally speaking the bubble currently surrounding the London market appears to be floating a little bit higher and safer than the majority of the rest of the UK. Having said that we also have to take into account that the capital possesses sub-markets within a market. Inevitably there are certain boroughs that will outperform others in terms of property prices both in a commercial and residential capacity.
Property commentators appear divided on exactly where the property market is headed next, with a handful of optimists suggesting slight rises but major lenders Halifax and Nationwide forecasting a flat market in 2011. However, the common ground appears to be that most forecasters expect London to buck the sliding trend thanks to the capital’s stronger economy and acute supply shortages.
To help establish this optimism the December 2010 Land Registry report showed prices rising for the first time in London since July of the same year. The average property value in London is currently £342,325, more than twice the national average. The report also added that the North South divide remains pronounced, with annual house price inflation running at 6.2% in London and 2.7% in the South East, compared to a 3.3% drop in values in the North East last year.
When commenting on the current market, Philip Clarke, director of property consultants, Fisher Property Services stated that a shortage of properties coming onto the market should keep prices in popular areas above water.
He said: “During 2011
