Thanks to the Olympic Games and its reputation as a ‘safe haven’ among overseas buyers, London continues to buck the national trend of falling house prices, according to a study.
Property analyst Hometrack’s study said that the eurozone crisis has motivated a large number of overseas buyers to invest in London’s property market, while the Games is set to heighten interest in the capital’s properties.
The report said nationally, house prices have unsuccessfully been able to record a monthly increase for a year and a half, while the pressure on household budgets including landlord insurance, bills, tax, food and also the poor economy are predicted to drive them further down.
In January, London was the only area in England to experience an increase in house prices, with a 0.1% increase, compared to property prices in the North East which fell by 0.4%, the biggest fall in the country.
The average house price across the country remained flat in January, following a 0.2% drop in both November and December, the survey of 1,500 surveyors and agents revealed.
Demand for properties in London is high and stay on the market for just 6.5 weeks, while sellers in the North, Midlands and Wales must wait an average of 3 months to shift their property.
The Olympics
As the Olympics brings everyone’s attention to London, the report said that the strong London market “looks set to continue through 2012 as the Olympics firmly focus the eyes of the world on London, and overseas buyers, in the midst of global uncertainty, continue to consider London a safe haven.”
Richard Donnell, Hometrack director of research said, “The latest Hometrack survey reveals a market dogged by uncertainty.
“On a national basis house prices have not increased over the last 18 months – a theme carried over into January when prices were unchanged.”
He carried on to say “London looks set to buck the national trend again in 2012 thanks to overseas buyers providing a boost to prices in London’s prime areas.”
Nationally, 2012 got off to a slow start in general. Agents reported that some 10.5% fewer new buyers signed up in January compared to December, while 5.4% fewer properties were listed and 14.3% less sales were agreed.
The number of properties coming to the market in Wales and England in the last