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London house prices are on the rise again
24.04.09
Hopes of a recovery in the housing market were fuelled today after prices rose in London for the first time in more than a year.
Estate agent Knight Frank said prices in prime central London rose 0.4% in April - the first increase since March last year.
The recovery was led by houses priced under £1 million in Chelsea, Kensington and Mayfair. However, the cost of London's most expensive homes are still falling.
Knight Frank said average house prices in prime central London have now fallen 23.6% since their peak in March 2008.
Liam Bailey, head of residential research at Knight Frank, said: "Our view is that price falls are almost at an end in the central London market.
"However, we should not be surprised to see some negative monthly results through the year. The most significant issue remains sales volumes which are likely to be constrained by a lack of stock over the next three to six months."
Reader views (13)
Has anyone noticed how few property bulls there are when they scroll through any readers' comments after articles such as this? I remember thinking London property would come cheaper in 1992, and I missed the boat. Looking back, what did I expect to pay for a 2 bed in W8, 50p?? I left London in 2006 thinking the buy to let frenzy would end in tears- it has- those guys have been hurt. Look around, almost every person who commented is hoping for further declines, and is married to that view. In markets, you have to be flexible. The reckless buy to letters have got their comeuppance. But don't cut off your noses to spite your faces. When Chelsea trades at similar levels to Fulham, that means Chelsea is a buy. The benchmark blue chips eventually lead the rest of the market.
- Contrarian, Toronto, Canada
I have to say that prices are definitely not rising in Camden. For the second time this year, we have just cut the price of our flat again.
- Paula Hickman, London
More price-ramping from eager estate-agents. Not a chance of prices going up. Worst recession in living memory just starting, unemployment rocketing up, government stony broke, taxes rising. Prices are only going one way and that is down, down down.
- Brendan, London, UK
Prices have dropped markedly in the US since the start of 2009. We have a small flurry of activity at the moment because this is the most popular time of the year to move. However, there is a massive overhang in foreclosures that is only beginning to hit the market which can only mean another sharp correction. (Foreclosures take 12-18 months to be processed legally so only a small minority have hit the market yet)
Here in Chicago, the only sales going through are at 40% below peak prices. That's 2001/02 prices.
I am actively looking for a house now. These aren't official statistics, just what I am seeing.
If you believe that the US market leads the way then you are in for another sharp correction in the UK.
I always think that newspapers really damage their credibility when they base their headline and story on the opinion of an estate agent. There are as likely to be telling the truth as a Labour politician...
- Ralph Jolly, chicago usa
When will people realise that the CPI is manipulated to exclude house prices from inflation and that the M3 money supply is VAST in this recession, then they may take a brake and finally realise that house prices never did rise just inflation by devaluation of the sterling currency and now that money is being printed like there is no tomorrow (quantative easing) they want to squize every last drop out of it before the REAL(nominal, whatever you want to call it) correction in house prices happens after the commercial loans cave in later this year far greater than sub-prime at the very least by an order of 10 in magnituded. I Truly feel sorry for those caught up in the final phases (tail) of the bubble thinking it’s a bargain but its media hype. Its going to be brutal for the unsuspecting so called "investors, buyers" trying to buy at the low end. This mess has jus begun first sub-prime, then commercial then ….. Who knows?
Sorry to be so pessimistic by nature am an optimist but it’s a case of leading the herd to the slaughter in 2009 with the politicians pumping illusions of hope does not help, estate agents gasping for every single sale it’s the same old game, but guess who has to pay! As always the unsuspecting buyer.
- William W, London
I asked my local estate agent about prices today and he said that ASKING prices are up slightly, but the selling prices are still going DOWN.
- Mark Burton, St. Ives. Cambs
WHEN IS THE GOVERNMENT GOING TO DO SOMETHING ABOUT THE HIGH DEPOSIT NEEDED FOR PURCASING A PROPERTY
- J Windsor, LONDON ENGLAND
Damned lies and statistics.
- Dave Davies, Basingstoke
With a continuing mortgage famine, there is simply no way that people can buy houses in significant numbers, at any price, even if they want to. What is more likely is that more and more high-priced houses are coming on the market as the middle class is getting decimated. This gives the illusion that house prices are rising, but all it means is that high-priced stock has come on the market.
Furthermore, the Land Registry figures do NOT include repossessions, which conveniently removes the biggest single problem at the moment from the headlines.
And finally, never trust your money to someone who earns a commission from managing it, nor take advice from someone who has in interest in selling you what they are advising you on. Meaning, never listen to estate agents about house prices as they will always give you the story that they want to be true rather than the story that is true.
- Matt, London
Mr Bailey can keep dreaming. Prices will start to fall even more sharply once the bankers who were let go with 6 to 12 month severence packages burn up the cash and consequently they will become forced sellers. Only a fool would buy a house now unless they absolutely had to.
Seasonally adjusted, the figures are still woeful. With a much higher tax burden on the horizon there is nothing to support the claim that we have reached the bottom.
- Investment Banker, London
Hmm, how does this work. Unemployment up, economy down. LTV and salary multiples down. Who is buying this stuff? Surely all the economic indicators point to more falls.
- Sam, London
Great news - I can borrow more on the valuation of my house . When will people learn the lesson?? Estate agents ,lawyers, and bankers will continue to lead the country down the road to hell . When the british appreciate that a home is not a "stock" will the country recover.
- Terry, Hennebont France
So, estate agents say prices are rising.
It's a bit like asking turkeys if they don't want to be stuffed for Christmas.
- Simon, London
