London House Prices Surge Most in Two Years

London home sellers raised asking prices by the most in two years in October, pushing values in the capital to a record.

Asking prices rose 5.2 percent from September, when they increased 2.4 percent, Rightmove Plc, Britain’s biggest property website, said in an e-mailed report today. That’s the biggest climb since October 2009 and takes the average price to 450,210 pounds ($710,000). Separate data from Rightmove showed national home values gained 2.8 percent in October.

Demand in London has been boosted by cash-rich buyers with large deposits who are benefiting from cheap mortgage rates. Rightmove said last month that prices in the city are also being supported as Europe’s debt crisis encourages investors to seek less-risky assets.

“If prices are perceived to be rising, then buyers are afraid that their dream home could move out of their reach unless they act quickly,” Rightmove Director Miles Shipside said in a statement. “This should drive higher volumes of transactions.”

Asking prices in Kensington and Chelsea, London’s most expensive district, rose 6.6 percent on the month, Rightmove said. The average price in the area was 1.92 million pounds.

From a year earlier, national asking prices rose 1.2 percent in October to an average 239,672 pounds. In London, prices were up 7.5 percent on the year

http://www.bloomberg.com/news/2011-...s-surge-most-in-two-years-to-record-high.html

Once again London real estate appraisers are showing how price-fixing works in the real estate sector. Made in London.

 

London prices right now are designed to seperate rich fools from their money.

The money has already been made, now prices are in the hands of simple maths. Compound 10% over the next 15-20 years and you end up with a 1 bedroom flat probably in excess of £4million.

'But it's London, prices can't go down, it's a different market to everything else.'

Well, simple maths argues differently and maths over hope always wins.

 

I'm in no hurry to sell .

Still, i hear number of redundancies from the City are climbing, which tends to put a brake on property price appreciation here.

Also, if the financial transactions tax proposed in Europe, but fiercely resisted by us, comes to pass, then prices here would fall apart.

 

I can't wait for these m.fxckers to be sent to dull places like Dubai or Singapore!

 

for people on the other side of the ocean:

redundancies

Chiefly British.
The state or fact of being unemployed because work is no longer offered or considered necessary.
A dismissal of an employee from work for being no longer necessary; a layoff.

 

London is ridiculous. This is why even a terrace house is (apparently) worth GBP300K and the owner turns it into 4 bedsits/studios to pay the mortgage, each one with an immigrant family straight of the boat living in it, and a pokey shoebox studio in Chelsea is priced at half a mill.
Londons a shithole with it's own inflated economy.
I'd leave but I love Soho too much

 

In 1989, if you had said central Tokyo real estate prices would fall for the next 20 years, you would have been laughed out of the room..

Deflation is here, and it doesn't spare ANY asset class.

 

No deflation here in London, mate.

 

Not yet, no, which is exactly what they said in Japan in 1989..

 

I don't think so, in Tokyo, people were taking out 100 year mortgages, the entire real estate of Tokyo was worth more than the the entire US etc. A real bubble.

London is not even close, you can barely obtain a mortgage here without a substantial down payment.

Rents here have also gone up much in this year, lending support to property prices.