London house prices perk up in September

Sep 20, 2011 - PropertyGuru.com.sg

Home sellers in London have raised their asking prices this month due to a lack of properties in the market and as investors seeking safer assets bolstered values amid the financial turmoil, according to Rightmove plc.

New data shows that asking prices climbed 2.4 percent in September from 3.4 percent in August. Separate data from Rightmove revealed that home values in the UK increased 0.7 percent after declining 2.1 percent in August.

Although values were supported by record low interest rates, consumer confidence is preventing the market from gaining momentum, along with lenders' insistence on huge deposits. Rightmove said demand in London has been boosted by cash-rich buyers investing in the property market despite financial volatility in Europe.

“London's buoyant property market looks set for a brisk autumn as buyers chase a more limited choice of fresh properties,” said Miles Shipside, Commercial Director of Rightmove. “With the continuing turmoil in the financial markets, and the threat of a Greek default, we are seeing a flight to safe assets.”

Rightmove noted that national asking prices increased 1.5 percent this month to an average of £233,139 (S$456,530). Prices in London, Britain’s most expensive real estate segment, surged 7.2 percent year-on-year to £427,889.

Of the 32 boroughs in London, 28 saw price increases this month, led by London’s southern suburbs of Merton and Sutton. The number of homes put on sale this month dropped 12 percent to 17,966, compared with September last year.

“This is a significant reduction in supply that will maintain the upwards pressure on pricing in the capital if it continues,” said Rightmove.

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