As long as the housing crisis endures, London prices will continue to increase, according to property experts.
The recent release of The Land Registry and ONS house price index for December 2016 showed house price rises across England had outpaced London for the first time since the 2008 financial crisis.
But industry bosses have insisted the capital won’t be slowing down any time soon.
Haart estate agency CEO Paul Smith said: “House prices continue to defy the doom-mongers and the doubters again this month, experiencing a very strong end to 2016 – assisted by a wealth of positive news about the performance of the UK economy, but also pushed up by the continuing shortage of stock in the market. “
Director of investments at Property Partner Rob Weaver echoed his position.
He said: “The housing market may have plateaued during last summer but for the final two months of 2016, prices regained momentum.
“The critical shortage in supply alongside ultra-cheap borrowing rates are supporting house prices and that looks set to continue.
“Until more properties are built for both buying and renting, the market for investors looks positive as prices continue to move upwards although overall at a gentler pace than before.”
The rate of property price growth in London did soften in December, growing 1.8% from November.
And, over the year, it saw a 7.5% increase, less than the national average of 7.7% and also lower than the East Of England (11,3%) and South East (8.5%).
Emoov.co.uk founder and CEO Russell Quirk said the capital’s market held up very well all things considered.
“Not only did prices see an increase of 7.2% annually, but heading into what is a quiet time of year for the market, an increase of 1.4% in prices and an uplift of 0.2% in transaction volume month on month, is a promising sign indeed for the year ahead,” he said.
Rob predicted the Elizabeth line would see prices rise back up in neighbouring areas.
“While prime central London has hit something of a wall, outer London boroughs are still recording double-digit price growth,” he added.
“The Crossrail effect and certain regeneration areas seem to be having an impact. The closer we get to the stations opening next year, buyer demand should intensify by the attraction of shorter commuting times.”
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