London property prices 'expected to grow'

Posted: 01 Aug 2011 12:33:22 GMT

The cost of houses in the capital may well rise.

Property in London may be set to get more expensive, if suggestions from one expert are anything to go by.

Hugh Best, head of investment management at London Central Portfolio, says: "We expect to see above-trend growth in the coming years."

Sterling remains weak compared with other currencies and there is a great deal of foreign money entering the economy, he continues.

This all contributes to make London seem like a "safe-haven asset" that allows people to "park their money" during difficult times, Mr Best claims.

Residential property in the capital is one of the most attractive environments, while areas such as Portugal and Spain could be less so, due to the state of their finances.

According to a report from Knight Frank published today (August 1st), prime London property prices have boomed by 9.6 per cent during the past 12 months, meaning they stand at 35 per cent higher than the dip seen after the credit crunch in March 2009.
 

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