Central London property 'bucking the national trend'
Values for property in central London continue to buck the national trend and are creeping ever upwards despite the ongoing economic difficulties in the UK, it has been revealed.
Naomi Heaton, chief executive at London Central Portfolio, said the fact 'prime central London' is classified as just two boroughs out of a total of 33 in Greater London means there is always a scarcity surrounding property in this category.
As a result, values are maintained at much higher levels than in other areas of the UK, as in total, prime central London in fact only covers an area of six square miles and is comprises the Royal Borough of Kensington and Chelsea and the City of Westminster.
However, this means there are many other areas of London which are prime for development and offer excellent possible returns for developers.
Ms Heaton commented: "In Canary Wharf, average prices are just one-third of those in the heart of the capital and there is extensive over-supply.
"Since 2000, 30,000 new units have been developed, in stark contrast to the 500 or so units developed per year in prime London central."
Ms Heaton added the factors which drive the London market also have little to do with the rest of the UK, as in other areas local and domestic factors take precedence, but in the capital there is more of an international focus and there is always high demand.
Prime London property is therefore a scarce resource which appeals to a global marketplace, so therefore it is little wonder that these property values are much higher.
According to the latest Knight Frank/Markit's House Price Sentiment Index, a perceived reduction in home values was reported by 17 per cent of UK households during April 2012, as opposed to around eight per cent who indicated a rise.
This placed the index at a level of 45.4 this month, down from March's 20-month high of 46.6.
--- Ends ---