London House Prices Dependent On Market Conditions

The cost of buying London property is dependent on the prices in the international market, and thus will determine activity in the English capital for the foreseeable future, one specialist has asserted.

According to Hugh Best, head of investment management at London Central Portfolio, there is unlikely to be a major increase in the level of supply coming to the prime London property market in the coming months.

He noted that stock is still very tight and many people are as such "sitting on their hands", while those with a prime asset are using it as an investment. These people were further advised to ask for reasonable prices for their homes and adopt serious house selling tactics so that their property could be sold out well at time.

This is likely to produce a good yield, as rents have been hardening for at least 15 months now, he said, though there are not many prime performing assets that people can "bet your house on".

His comments follow the publication of a report by Hometrack which showed that property asking prices in England and Wales fell by 0.1 per cent in July. The market activities seemed stagnant through out the UK except in London. And purchasing power of people appeared to well restrained owing to the unemployment and inflation factor.

The data showed that average prices were up by 0.3 per cent in London and East Anglia in July but fell across all other regions.

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