Property News > The Rise of London Property Prices

The Rise of London Property Prices

The level of growth in the UK property market is no secret, nor is the fact that London continues to drive this nationwide expansion. Although prices in the capital stagnated slightly in the run-up to the general election, they have now rebounded to drive widespread growth and create a seller’s market.


House prices in the capital are now expanding at an incredible rate, however, and this trend is expected to continue for the foreseeable future. One of the key reasons for this is a surge in international investment, as wealthy individuals in the Asia Pacific market look to capitalise on London’s thriving property market.

In fact, the level of growth in London is set to reach unprecedented levels in the next five years. More specifically, house prices in the centre of the capital are set to rise by 18% by 2020, the cost of renting homes will rise even further by 19.5%. Although these figures may have been distorted by the initial waves of positive sentiment triggered in the wake of the general election, the determination of the Conservative government to drive property market growth should help to sustain future performance.

It is wise not to underestimate the importance of the general election result, as the selection of a Labour or Liberal Democrat government (or a three-party coalition) may have seen the introduction of a mansion tax and rental caps that would cripple the market. There is a genuine sense of relief now that this possibility has been avoided, while the introduction of the Help-to-buy ISA will also provide assistance for aspiring first-time buyers who are keen to take their first steps on the property ladder. Now that the level of value in the market has also been secured, the rate of interest from international investors has also begun to soar.

With this in mind, the outlook for the London property has clearly improved amid greater security and rising price points. This will also extend nationwide for the remainder of 2015, allowing for the occasional, temporary troughs in supply and demand.

Towards the end of the year, it is hoped that the market will stabilise further, as price growth consolidates and first-time buyers are given greater encouragement and the practical resources to make their initial move. This will lay the foundations for a prosperous 2016 as the market continues to promote consistent economic growth.

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