The correction of prices in the real estate market of London may continue in 2015

Price growth in most UK regions has exceeded expectations, according to a published index of asking prices from Home.co.uk

Current asking prices in England and Wales is 7.8% higher than they were in January 2014.

The largest price increase last month was in greater London where prices rose in December by 0.6%. At the same time, there has been a serious decline in prices for luxury properties in Central London.

An encouraging factor is that a small price increase on the 0.4% recorded in the North-East in the last month, as the recovery of the property market of England to the North was not apparent during the past year.

The asking price in 7 regions of England and Wales increased by 0.1% in the last month. Only in Scotland and in the East of England last month was a significant drop in prices by 0.6% and 0.8%, respectively. The positive momentum that the market has received in 2014, will have revenge in 2015. Demand remains strong, and the process of obtaining mortgages perfected and is getting better.

The only circumstance that may dampen positive sentiments in the property market in England and Wales is the uncertainty in the real estate market of London, which is present in connection with the upcoming political debate on the taxation of expensive real estate.

Prices for luxury housing in Central London fell by an average of 9% over the past 12 months, at the same time, the number of proposals increased by about 64%.

According to the Director of Home.co.uk Dog shepherd, there is a high risk that the correction in the real estate market in Central London in the South-East will continue for the 2015-2016 year. The largest decrease in prices observed in Belgravia. After their peaks in November 2013 the average housing prices in Belgravia fell from £1950000 up to £1600000 – this is the biggest drop in prices in comparison with other areas of the UK.

This is not a cause for concern because history has shown that all of the UPS and downs in the property market in the UK began with changes in the real estate market of Central London. In Islington prices peaked in March 2014, and then fell by 11% and the absolute equivalent means a price reduction of £85,000 in 10 months. During the same period, the average time of sales in the market increased to 220 days, despite the fact that last year it was only 35 days.

The residential property prices in Central London have experienced an unprecedented boom during the 2012-2013 year, and then spread to the whole of London. Ultra-low interest rates and stimulus measures the government has done its job. Now many investors and buyers have already paid for your self-confidence. However, the price adjustment process is more a desire of the market to come to a more natural equilibrium that should certainly improve the overall situation in the property market of London.

However, investment in student housing and investee in a cheap apartment with one bedroom in London, will always remain super-profitable investment

® Helen Entree. 15.01.2015 g.

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