Property values in Central London
increased in June by 0.9 per cent, according to the latest figures from Knight Frank. The firm also anticipates further price hikes of up to nine per cent by the end of 2011, up from its initial forecast of three per cent growth.
Since reaching a low point in March 2009, prices in the UK capital's prime market have climbed by 34 per cent, putting them two per cent higher than their previous peak in 2008. Liam Bailey, head of Knight Frank Residential Research, predicted "continued strong conditions" in the sector over the coming months.
"This forecast assumes a slowing in price growth in the second half of the year, driven in part by rising supply and a more competitive environment for vendors," he stated. Meanwhile, WA Ellis noted that its predictions earlier this year of eight to ten per cent rises in property values appear to be coming true.
According to the firm, demand is buoying the market, with both foreign investors and domestic buyers looking to find property in the city. Rising prices are also forcing more people into the rental sector, which could be good news for investors hoping to generate an income from their real estate portfolios.
- Wednesday 06 July 2011