Property in central London
is expected to be more resilient to further price falls than the rest of the UK market, research from Capital Economics has forecast.
In total, the organisation believes that home values in the region will fall by around ten per cent when compared to the market peak, about half the expected decline the body predicts will be seen for the UK as a whole.
"These falls will probably start a number of months later than in the wider market and may end a few months earlier," the research says. "To our minds, given that the ratio of central London house prices to the national average has already passed its peak from 2002, the risks to that forecast seem to lie to the downside."
Capital Economics added that robust demand from Asian buyers is likely to bolster the market and ensure its continued recovery.
However, the nature of the economic recovery in most developed economies will limit the number of foreigners able to buy property in central London.
- Monday 14 February 2011