Legal News
London Property Prices to Increase By 20 Per Cent over Next Five Years (15 November 2011)
Date: 15/11/2011
Experts have forecasted that property prices in London will increase by almost 20 per cent in the next five years. London’s property market is predicted to remain Britain’s most resilient, with the greatest increases to be seen by some of central London’s most sought after neighbourhoods. Should these predictions remain valid, the value of a £500,000 family property in London could rise to almost £600,000 by 2016. Property prices are predicted to increase slowly, or even drop, outside of London and this recent forecast is likely to deter thousands of families from moving to the countryside.
Yolande Barnes, the director of the agents Savills, claimed that relocation activity in the capital city has seen a 24 per cent fall in recent months, with residents seemingly increasingly reluctant to move away. This has meant that property prices in the South-East have remained at 12.5 per cent below their peak and are predicted to only rise in the event of greater economic stability. Prices are predicted to drop next year due to increasing pressure on household budgets as a result of high inflation and a lack of increased income. However, a slow recovery is forecasted for 2013.
By 2015, property prices are likely to increase by six per cent per annum, according to analysts. Research from Savills suggests that London homeowners are unlikely to reap huge benefits from selling their properties in the foreseeable future. The predicted cumulative 19.1 per cent increase in property prices in London over the next five years proves to be ahead of inflation by a mere two per cent.
Duncan Lewis’ conveyancing solicitors can ease the process of property acquisition for their clients.