What with disappointing UK retail/unemployment figures and the pessimistic economic outlook supplied by Bank of England Governor Mervyn King, good news was in short supply last week.
Thankfully Rightmove Plc has been able to offer some more upbeat figures this morning.
Despite the current national trend of decreasing property prices, the values placed on properties in London increased in November – thanks largely to investment by overseas buyers.
This latest housing price rise in the English capital follows similar increases recorded in September and October.
According to a report compiled by the UK’s largest property website although housing values decreased by 2.6 per cent nationally, London property prices grew by 1.2 per cent in November.
In the nine most expensive districts in London home prices leapt by 3.4 per cent with the average property now costing in excess of £600,000.
Following the news the British Pound was able to post a third day of advances against the US Dollar, gaining 0.1 per cent.
Rightmove’s commercial director said of the results: ‘The prime central London property market continues to attract wealthy foreign buyers. This is especially true in the international property hotspots of the City of Westminster, where a Mayfair or Belgravia address is a pre-requisite for the world’s wealthiest. The best of London is increasingly in ‘international only’ reach.’
Property consultancy firm Knight Frank LLP asserted that properties at the highest end of the market are now valued 16 per cent higher than they were in 2008, a result of investors seeking more stable investments during these turbulent economic times.
Despite the far-from-confident outlook prescribed for the UK economy by several industry experts the nation’s currently flagging property market could well be bolstered next year by the Bank of England’s Funding for Lending scheme.
As an analyst with London-based Newedge Group asserted: ‘The housing market seems to be set to improve a touch in 2013 as the effects of the BOE’s Funding for Lending program will start to filter into the economy.’ However, Annalisa Piazza remained cautious, further commenting; ‘However, we rule out a sharp acceleration in activity and prices as housing-market conditions are still very far from the boom seen before the last deep recession.’
As of 11:18 am
The Pound to Euro exchange rate is currently trading at 1.2456
The Pound to US Dollar exchange rate is currently trading at 1.5908
The Pound to Australian Dollar exchange rate is currently trading at 1.5305
The Euro to US Dollar exchange rate is currently trading at 1.2771
The Euro to Pound exchange rate is currently trading at 0.8026
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