Property in London continued to rise in price through October, according to Rightmove’s latest figures, growing by 2.3% to hit a new all-time high of £412,731. The property website says this growth is partly due to the return of three bedroom properties onto the market following their inclusion in HIPs, which pushes the average price back up.
Looking ahead, Rightmove also predicted property prices will continue to rise into 20008, though slowing to an annual rate of 5% from its current heady and unsustainable level of 19.6%. Areas like Kensington and Chelsea, at the top end of the market, are likely to continue to increase in price more, as affluent buyers can afford to offer more, says the report.
‘As a major world capital, London prices should remain robust over the longer term, as demand will remain strong. However, there will be a flatter period that is actually good for the longer term health of the market as the levels of price increases seen in the last 18 months are unsustainable,’ the report continues.
Signs of the credit crunch are evident, as time on the market for properties in London has now hit 86 days, the longest recorded by Rightmove in five years. However, these effects should not be dramatic: the credit crunch only means that some sellers in areas where there is a wealth of properties for sale will have to be more flexible with their price expectations.
However, the general cooling of the market does have one exception: Camden. With the development of St Pancras station, which has just benefited from a £800m refurbishment, prices in the borough shot up to show the second highest inflation in the whole of London for October, at 6.9%.