London market headed for a slowdown
Tue 11th Sep, 11:33:24 BST
The London property market will start to slow down soon, according to figures from estate agency group Knight Frank.
It estimated that annual price growth in the centre of the capital will drop from its current level of 36 per cent to 30 per cent by the end of the year and predicted that the number of properties sold would fall.
Liam Bailey, head of residential research at Knight Frank, told the Daily Telegraph: "There will be a drop in sales volumes as people continue to be over ambitious with asking prices.
"Prices are levelling off in central London," he suggested. "We''re returning to a more normal market".
However, in a statement the firm said it remained "positive" about growth potential in 2008, suggesting that prices could increase by as much as 10 per cent, with homes worth less than £1 million and those that valued at more than £5 million acting as the primary drivers of growth.
Over the last six months, the areas with the highest property price growth in the city were SW10, which recorded a 4.1 per cent monthly increase, and W1, where prices rose by an average of 3.9 per cent each month.
It estimated that annual price growth in the centre of the capital will drop from its current level of 36 per cent to 30 per cent by the end of the year and predicted that the number of properties sold would fall.
Liam Bailey, head of residential research at Knight Frank, told the Daily Telegraph: "There will be a drop in sales volumes as people continue to be over ambitious with asking prices.
"Prices are levelling off in central London," he suggested. "We''re returning to a more normal market".
However, in a statement the firm said it remained "positive" about growth potential in 2008, suggesting that prices could increase by as much as 10 per cent, with homes worth less than £1 million and those that valued at more than £5 million acting as the primary drivers of growth.
Over the last six months, the areas with the highest property price growth in the city were SW10, which recorded a 4.1 per cent monthly increase, and W1, where prices rose by an average of 3.9 per cent each month.
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