London house prices 'could increase'

Posted: 05 Sep 2011 13:59:52 GMT

It is very realistic that property prices in central London could escalate, it has been claimed.

It is totally feasible that property prices in central London could begin to escalate in the near future.

This is according to Naomi Heaton, chief executive at London Central Portfolio, who suggested further increases could take place regardless of such costs in England's capital already reaching record highs.

The industry figure was speaking in response to new findings from Knight Frank, which showed prices of prime London dwellings climbed across August by 0.9 per cent.

She said it was very realistic for the momentum to continue, adding: "Our opinion has always been that the market had not over-inflated prior to the credit crunch, but was in line with long-term growth projections following a slow start to the millennium."

House prices are thus likely to head back to where they would have been had the economic downturn never taken place, which could result in sped-up growth that outpaces the long-term averages of eight to nine per cent a year already witnessed.
 

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