London asking prices to hit record levels in 2014

 
Kasmira Jefford
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INITIAL asking prices for London homes are set to rise by six per cent next year, a slowdown on 2013 but still taking London prices to new all-time records, new research out today shows.

According to Rightmove’s latest house price index, the average price of property coming to market in London is up by 10.6 per cent in 2013 to £513,466.

Prices are usually more subdued in the run-up to Christmas but a fall of just 0.7 per cent in December compared with an average festive decline of 1.9 per cent over the last five years.

“A lower than average fall this month indicates there is still unspent momentum in the London property market in spite of this very heady double-digit annual rise,” Rightmove commercial director Miles Shipside said.

The property site forecasts that the pace of growth will slow in 2014, though it still predicts London prices will reach new records during the spring of 2014.

“A more modest six per cent rise still represents another £30,000 on the average price of a property coming to market, and while some may question where buyers continue to get the money from, they seem to keep coming up with the goods,” Shipside said.

Average new asking prices for homes in the south east are also expected to rise by 10 per cent as fewer homes coming onto the market in the capital force future buyer to widen their search.

Separate data released today by agents Bernard Marcus also highlight the strong levels of activity in December, reporting sales transactions in the capital up 56 per cent in November compared with the same time last year and two per cent on the previous month.

“The current property market appears to show no signs of slowing as we approach Christmas, with activity levels and house prices remaining buoyant,” chief executive David Plumtree said.

Transaction levels have increased by 32 per cent across the UK, boosted by a wave of new buyers, up 36 per cent on last year.