23/12/09 London has seen steady house price rises over the last 12 months driven by a lack of property for sale in London. Investment analysts point out that London house price rises are not sustainable for 2010 and a dip is likely to be on the way.
Mike Keogh, investment analyst at Henderson Global Investors.
“The current rate of price appreciation in the U.K. is not sustainable,” says Mike Keogh, investment analyst at Henderson Global Investors. “The more aggressive the market adjustment is over the next six to nine months, the greater the concern that U.K. property could experience a slight decline.”
Property Investor interest could rise in commercial-property markets in continental Europe like Madrid and Frankfurt if competition for prime property in London drives prices higher.
Mr. Keogh goes on to explain ” “We have an investment market that is bottoming out and an occupational market that is still struggling,”
The Nationwide Index shows house prices reaching their low point in February, when the average home cost £147,746, and since then they have risen by ten per cent on a non-seasonally adjusted basis.Many economists do not expect the improvement to last for much longer, as the combination of rising unemployment and the ongoing problems in the mortgage market once again exert downward pressure on the market
