News
Market Comment
February 24, 2012
Never has the impact of overseas equity been more prevalent in London’s property market. London’s bricks and mortar are acting as wealth preserver in a sea of global uncertainty almost completely divorced from the market in the rest of the UK.
Central London has completely bucked the national trend and price differentials between London and the country have never been greater, although there are signs of price growth in the South East, particularly in some key commuter hotspots.
New build prices are now in many areas substantially above their previous 2007 peak particularly in prime areas where the product has matched the aspirations of overseas buyers. Low start volumes continue to add to the upward pressure on prices.
However, we expect more stock on the market later this year and doubt whether the uncertainty in the Eurozone, with UK banks and the general economy will have dissipated. Will these continuing issues lead to more money pouring into London property or lead to a pause for thought given the increases we have already seen?
