London Property 10 Percent Off 2008 Peak

London property prices have risen by a record 3.2% during February, the strongest rate of increase in one single month since August 2007. However, the real story lies in the fact that property prices are now only 10% off their peak March 2008 prices...


According to research by Knight Frank’s Prime Central London Residential Index, property prices across the whole London property market have risen by 19% in the last 10 months.

Inspired initially by low interest rates and a weak pound, the last year has witnessed an influx of foreigner property investors who have been tempted by the good value London property has presented. It is believed that 45% of £2m+ valued property investments were sold to non-UK property investors…

However some property advisors feel this property price increase may be short lived.

With 22% fewer properties for sale compared to this time last year, demand for property is wildly out of proportion to the amount of properties available, especially as purchase applicant registrations are 30% higher than they have been for the last 5 years.

The worse hit areas appear to be at the top end of the property market, where £5m-£10m property investments in Mayfair, Kensington, Holland Park and Knightsbridge are thinning out, as more and more property investors are willing to bid high in order to secure the property.

Property development too has felt a surge in property interest from Singaporean, Malaysian and Thailand property investors whose growing interest in new-build properties across the Canary Wharf has increased by 120% compared to this time last year.

It is not surprising that with such interest property developers have decided to re-enter onto the property market by building 43% more properties between July and December 2009, demand for property is growing.

Original Article

More About the Author

Fraser Stirling, Property Mentor Delegate

No matter what the media wants you to believe, property is still the only investment route where you can benefit from an asset that will NEVER go into zero value. Even when I was university I admired properties ability to withstand the economic elements and stay strong, even when other investment forms faltered or failed. X years on, I am now the proud owner of multiple property investments - one of which earns a passive income of £4,680 and my property portfolio is still expanding. Read more