London property market sees extraordinary growth
Published On 2 October 2006
The London property market has seen extraordinary growth over the last year, according to new research.In fact, house prices in London have grown at their fastest annual rate for almost a decade, new figures from estate agents Knight Frank show. The property specialist has released data showing that property values in the British capital were up 23.5 per cent in the 12-month period up to September 2006.
Knight Frank claims this is the highest annual increase recorded since the survey began in 1997. And analysts at the company have said the summer slowdown which occurred in August was only a slight dip and saw a 2.2 per cent rebound in the month of September. (rep) And with prices and demand so high in the London property market, there is now a lack of available housing on the market. The survey found there were comparatively half as many properties on the market compared to the same time last year.
Liam Bailey, head of residential research at Knight Frank, said the London property market saw an "extraordinary month" in September.
He said: "Buyers came back into the market in serious numbers after the summer break. Our records reveal that the number of buyers registered to purchase property in central London is 111 per cent higher than the same period last year."
Your Move also published research today which has revealed a positive pattern in the property industry right across the UK. The company's figures show that house sales across the country have reached a two-year high, with a record number of transactions taking place in September. Last month saw a total of 175,000 sold, which is a considerable month-on-month increase of 22 per cent.
David Newnes, Your Move managing director, said: "The housing market is in a very healthy state with record sales and a record number of buyers looking to sign on the dotted line. There is a real pressure for house prices to continue to rise over the coming months."
However, as affordability concerns increased Mr Newnes said analysts were not predicting continued growth in the housing market.
"Annual house prices are likely to only rise in single figures this year," he concluded.
