London’s Property Prices Predicted to Rise by a Third by 2019
New research suggests that London house prices could rise by almost a third over the next four years. According to a study by The CBRE Regional Development Land, demand in the capital will continue to outweigh supply. 2015 is predicted to see a 9% growth, while prices in 2019 will have risen by a massive 31% if the predictions are correct.
Far Reaching Effects
Even areas in the wider South East, like Guildford, Reading, and Woking, will see a significant rise in prices as buyers who are pushed out of the capital will look to take advantage of the increasingly improving transport links to the city.
Prices are expected to rise around 6% this year alone will by 2019 prices could have risen 26%. However, in London’s most exclusive areas, like Kensington, Knightsbridge, and Chelsea, growth is expected at a much slower rate, with just a 2% rise over the year.
These locales are already known for having some of the most expensive properties and high-end attractions in the world.
Overseas Investments
Many first time buyers will be disappointed by the news as many believe that the current London property market is already in an unsustainable position.
Over the last few years, many industry analysts have been predicting that the bubble will finally burst, but with increased interest from wealthy overseas buyers it’s shown no signs of slowing down.
Recent statistics show that overseas buyers have snapped up at least £100 billion of property across London over the past six years, with many buyers from countries like China and Russia looking to invest.
New Opportunities
However, the good news is that mortgage lending is now at its strongest point since 2008. Experts say that the rise was due to an increasing competition between mortgage lenders, as they attempt to cut rates to meet their end-of-year targets by the new year.
Many looked to take advantage of this, with a massive £21.8b handed out in October, the highest monthly figure since the pre-recession peak in July 2008. The average rate available on a two-year fixed-rate mortgage fell to 2.68% in October, down from 2.72% in the previous month.
A typical three-year fixed rate on offer also fell to 3.08% in October, the lowest rate in 2015 so far.
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Category: Real Estate
