Prime London property prices are predicted to see a growth of 2.5 per cent, over 2011, this increase is due to a current shortage of property and a continued strong demand for properties in London.
A combination of this and anticipated improved economic conditions are expected to deliver further positive growth over the medium term.
Until recently the London property market has been dominated by overseas investors, however buyers are starting to be drawn from a broad base, with first time buyers and purchasers, benefiting from a return of bonuses all looking for a place in the City.
However the expected stamp duty increase to 5% for property over £1m is increasingly becoming a factor, especially as the transaction must go through before the 1 April deadline to avoid the higher tax.
As rental prices increase it is often cheaper to buy than to rent an identical property. During the latter part of 2011 we will probably see a further price growth, as signs of an improved economic confidence emerge.
No comments:
Post a Comment