London Weathers the UK Storm

According to the Royal Institute of Chartered Surveyors, London is the only region in their monthly survey of house prices and listings around the UK to experience an increase in the amount of listings. The largest price falls were in East Anglia, Wales and the Midlands. Smaller falls were seen in the South East, South West , Yorkshire & Humberside and the North West.

London prices remain on target for a 17 percent increase in 2007, well out-of-step with the rest of the country. Usual nay-sayers, Capital Economics, are predicting price declines in ‘08 and ‘09, but they’ve been wrong in the past. Although Michael Saunders, of Citigroup, said the property market was likely to continue to decline. “House price inflation is below the national average in all regions except greater London and the south-east - and so for most people, the local housing market is already weaker than the aggregate data imply.”

According to the Financial Times, ” Prices in London rose 1.1 per cent in August compared with July and the annual rate of growth accelerated to 17.6 per cent, from 17 per cent in July. This was almost double the pace of growth of the south-east, the area with the second-highest increases, where prices were up by 9.4 per cent over the year. The cost of the average home in the capital is £363,364, compared with the national average of £225,826.”

Links:

• The Financial Times
• The Royal Institue of Chartered Surveyors