Newsroom
Central London prices set to surge 6% in 2010
Date posted: 09/02/10
Leading international property consultants and chartered surveyors, Cluttons, predicts prices in Central London will rise by sharply up 6% by the end of this year, with a further 4% increase during 2011. This contrasts sharply with a mere 1% growth for the rest of the UK, which will further increase the price gap between the Capital and the rest of the UK.
The report also predicts that rents are set to increase by 7% over the next two years, which is good news for buy-to-let investors. Cluttons believes this can be attributed to a number of factors, including increased City confidence and landlords becoming more assertive in rental negotiations, due to rising interest rates.
Andrew Stanford, head of Cluttons’ residential professional division, comments: “We believe firmly that prices are set to continue their ascent in London over the next two years. One of the key reasons is an acute shortage of good housing stock on the market and the influx of overseas buyers who are still continuing to snap up properties and consequently push up prices in the capital. In addition we expect this growth to continue well into 2014, as the City continues to recover and employment increases.
"The UK’s slow exit from recession has created some optimism in the general economy but recovery will not be swift, largely due to the Government’s large fiscal deficit and an expected 3% increase in the base rate over the next two years.”
For more detailed analysis, see Cluttons’ Residential Property Forecast, February 2010.
Andrew Stanford
020 7647 7207
andrew.stanford@cluttons.com
