The impressive growth in house values in London may slow down and plateau over the autumn and winter months, it has been suggested. Richard Barber, partner in residential sales at W A Ellis, commented that despite the widening gap between property prices in the capital and elsewhere in the UK, investors should not get complacent about the buoyancy of the city's real estate sector. He stressed that its current position as a "safe haven" should not be taken for granted.
"It is quite possible that the phenomenal growth that we have seen throughout central London may well soften over the autumn and winter months," Mr Barber stated. However, despite expecting prices to "plateau", he anticipated that there will be a "healthy level of transactions, particularly from investor buyers between GBP 1.5 million and GBP three million".
Property investors looking for districts in the city that are likely to continue to perform well may want to take note of a report published by Knight Frank last month, which highlighted 13 development hotspots in the capital. Among the regions singled out were Farringdon, Hammersmith, Midtown and Nine Elms, all of which are expected to see prices rise by 50 per cent or more by 2016.
- Wednesday 05 October 2011