London prices set to rise

Posted: 06 Dec 2007 10:59:21 GMT

Prime central London homeowners can expect to see the value of their properties increase by around five per cent in the new year.

Prime central London homeowners can expect to see the value of their properties increase by around five per cent in the new year.

That is according to global real estate service provider Savills, which says that the capital's property market remains robust.

It comes at a time when prices across the UK are said to be falling as the global credit crunch takes effect.

However, Savills points to the fact that London has not suffered losses on the same scale as other regions as a sign that the market is robust enough to remain positive in 2008.

"We're predicting growth in the prime central London market of about five per cent next year... To date, you haven't seen the reduction in prices or indeed the slowing in growth rates in London to anything like the same degree as some of the other areas in the country," said Lucian Cook from the firm.

"In fact, to date – ignoring some of the monthly statistics, because you can see month on month changes which can take your eye off the ball – [London] has been by far the most robust market," he continued.

The average UK house price was recorded as £194,895 in November, according to Halifax.

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