HOUSE prices in London are still on the rise and they’re falling back again, depending on which survey you believe.
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Today, the Royal Institution of Chartered Surveyors survey of London estate agents shows a big majority claiming prices rose in May, but a report out earlier this week – the England And Wales House Price Trends by Acadametrics – showed a slight fall in property prices in the same month.
Both agree that London has fared better than anywhere else in the UK and other surveys back up the notion that prices now are about 10% higher than this time last year.
The rise-or-fall conundrum is partly explained by different parts of the London market behaving differently.
At the top end, one of the main reason for London’s relatively strong performance is the influx of new foreign money, such as from millionaire Greeks looking for a safe haven for their cash.
Meanwhile, on Normal Street, the scrapping of the red-tape heavy Home Information Packs has encouraged more people to put their homes up for sale. With more houses in supply, you’d expect a price fall.
With the Age of Austerity looming, most experts expect prices, at least outside London’s exclusive areas, to continue slightly downward throughout this year.
