London house prices return to 2007 peaks
Prominent property website Rightmove has today confirmed that London property prices, at least in some areas, have returned to the peaks of 2007 despite the fact that the UK economy is still under pressure. While this is good news in the longer term, many people believe the move has come too soon and could cause confusion and mayhem in the short to medium term.
As more and more property buyers enter the market it is well-known that quality properties are not yet coming onto the market in the numbers required to fulfil demand. This has seen the price of properties in affluent areas of London squeezed higher and higher with reports of a 13% increase over last month alone. There is no way this kind of improvement in the UK property market is sustainable in the short term with unemployment rising, the cost of living under pressure and more and more people falling deeper and deeper into debt.
To give you an idea of current asking prices, you can expect to pay upwards of £747,000 for a property in Hammersmith and Fulham and upwards of £1.89 million for a property in Kensington and Chelsea. The average property price in London has increased by 6.5% over the last month to around £416,000.