Property prices continued to rise in London over the summer, most markedly in Central London. This leads a nationwide trend which shows that overall UK property prices have risen by 2.4% in the past year.
Despite price drops Scotland, Wales and Northern Ireland, the cumulative UK growth reflects steady property price escalation in London, Yorkshire as well as the East and North of England. Despite the slowdown attributed to the Summer Olympic games, over the last three months property prices have still increased by 0.5% on average in London.
Records were set over the summer at both ends of the spectrum. The most expensive real estate property in the UK is being offered off-market. The 59,998 square feet property in Knightsbridge has 45 bedrooms over 7 levels, with a swimming pool, several elevators and its own underground parking facility. At the other end of the spectrum, the smallest apartment in central London was put on sale. The 83 square feet portered apartment is on the market for £90,000.
Chelsea, Knightsbridge and Belgravia have retained top status in price growth with 10.5%, 9.6% and 8.3% respectively over the past year.
Market analysis shows that the growth in property prices has been stimulated by foreign investors. Wealthy foreigners move their money from economically troubled areas – the eurozone, former CIS or Asian countries – to London, with properties as safe haven investments.
In addition to investment purposes, family relocation has been a driving force in the property market. This can be seen in the prices of properties close to prestigious schools. Market studies show that properties in the same area as a prestigious school are generally £100,000 more expensive.
Ashton Rose
