London market steady

With the economy faltering and the housing market experiencing a slowdown, London seems to be holding fast – but for how long?

Even as uncertainty over the state of the UK housing market continues to grow, London appears to be bucking the trend. The last eighteen months have seen property prices rise by some 60%, although they have slowed in recent months. Any recent decrease in prices is small compared to the huge rises seen in the past eighteen months.

Alex Thompson of Winkworth estate agents, which has offices located in and around London, says, "Our expectation for the next quarter and beyond is of a steady and buoyant market but with limited price growth – in essence a more traditional sales market."

What is more of a concern are the costs associated with keeping and running a property in London. Council tax bills and other necessary payments are increasing year on year, which makes the overall cost of owning a London based home rise, even if the mortgage prices remain steady.

The property market in London is more divided than in other areas however. Middle class homes are likely to see the biggest shift in prices; the properties at the most expensive end of the market will always have buyers. Charles Leigh of the agency Knight Frank says, "The demand among people with huge amounts of money is already there. They just want a fantastic apartment in London and there aren't enough to go round. Anyone who has four or five homes round the world wants one in London."

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