London property prices 'will rise'

08 January 2010

Written by Steve Olejnik

Buy to let owners considering purchasing property in London may be interested in claims that prices are set to rise this year.

London Central Portfolio said that increases would occur thanks to the low cost of sterling and the fact that that capital has an "increasing appeal".

Chief executive of the company Naomi Heaton said: "If prices follow long-term trends and double again by 2016 this would represent, on average, annual growth of 11.5 per cent."

She explained that a total value of £1.25 million is estimated for all property by 2012.

A recovery in London's residential market began in the second quarter of last year. Prices currently remain "well below anticipated levels", which means that recovery is predicted to continue, Ms Heaton claimed.

On January 5th, Zoopla.co.uk reported that confidence in the housing market was now back to pre-credit crunch levels.

Some 81 per cent of homeowners said they thought values in UK homes would rise in the next six months, it noted.

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