London defies house price growth skeptics
London continues to defy predictions that the market will stall, with double-digit house price growth over the last 12-months.
The latest data from the Land Registry, widely considered the most precise house price metric, shows a 13.1 per cent increase in the capital’s property prices.
“This double digit level of growth in Greater London seems to fly in the face of commentators who say the residential market here are stalling,” said Naomi Heaton, chief executive of London Central Portfolio.
This is despite the 13 per cent drop off in transactions at the end of 2014.
However, Heaton added that this must be viewed in context.
“Historically, transactions drop an average of 15 per cent in the lead-up to any General Election, so the 13 per cent decrease in Greater London is not unexpected,” she explained.
“Whilst activity is expected to tail off over the next few months as the General Election approaches, all the evidence suggests that it will rally again thereafter, as the long term fundamentals for growth remain in place.”
Prices in Greater London have now reached £463,872, as of February.
The average in England and Wales as a whole is £180,252, up by 6.5 per cent on last year and now just behind the £181,083 November 2007 peak.
Jeremy Duncombe, director, Legal & General Mortgage Club, said that despite some short term fluctuations in house prices, it is the annual figure which people should take into account.
“Look at the trends over the last year or so which will give a clearer indication of where the market is heading,” he said.
“In the short term, pricing can be affected by many factors such as seasonality and the wider economic health of the UK which means they vary greatly on a short term basis.”