Property market 'unlikely to see growth'

Posted: 21 Sep 2010 10:12:03 GMT

The UK and greater London property markets are unlikely to see significant growth in the next few months, one expert has observed.

Head of investment management at the London Central Portfolio Hugh Best said imminent expansion looks doubtful, as the government has revised down its economic forecasts.

"London central has not fallen to date, although the rate of growth has slowed. We believe that this is an inevitable response to the rapid recovery in prices following the credit crunch," he remarked.

Mr Best noted it represents a temporary stay until the market returns to its long-term growth trends and he stated negative press has played its part in investor sentiment.

With records showing around 8,000 transactions take place in a good year - compared to approximately 5,000 now - consumers are all reading the same reports, which can cause temporary fluctuations in the market, he remarked.

The specialist's comments follow the latest figures from RightMove, which revealed property prices dropped by 1.1 per cent to an average of £229,767 in September and values fell 1.5 per cent in greater London.
 

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