London House Prices Might Increase by 5%

According to one of the latest reports by Cluttons LLP, London-based property broker, house price in London might increase by 5% in the next 5 years.

House prices in other parts of the country might grow by 2.5%. House price increases are expected as the number of marketed property, prime properties in particular is low, whereas buyers' demand grows steadily.

Improvement of overall economic conditions in the country is also expected to contribute to house price increases.

For the past years, the British property market was dominated by foreign investors, particularly Asians, who benefitted from low property values and weak sterling. However, the time has come for British investors to return to the market. Increased salaries and the return of bonuses have "pent-up demand from buyers who have been waiting to re-enter the market."

Mr. James Hyman of Cluttons LLP highlighted that the company sees “very strong price growth as buyers compete for the limited supply of prime property available, which is driving the market to levels in excess of the 2007 peak.”

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