London house prices rise for the first time in a year

Musings of a London Property Finder

Following other house price indices, the Land Registry house price index published today, showed that London house prices have risen for the first time in a year.  Many will be hoping this marks the bottom of the market, however we think the main inference for London is that the downward slide in house prices is slowing. 

At this time in the year and from our own experience of the market we would conclude that the market will continue to suffer slightly this year but at a much slower rate than last year.  With six boroughs showing positive house price movement in March, some areas are likely to see a steadying in prices, with little fluctuation for the rest of the year.

House prices in London have actually risen overall, but areas showing increases now, such as the borough of Camden, which includes Hampstead and Bloomsbury, tend to have seen large average price falls recently, giving a slight net price decrease.  Prices in the borough of Camden dropped 4.3% in February but rose 2.1% in March. 

There seems to be some levelling out but each micro-area is experiencing the market differently.  For example prime areas such as parts of Westminster and Kensington and Chelsea were cushioned to the effects of the market for much longer last year than other London boroughs but both have been much more prone to house price deflation over the last 6-9 months. 

In our capacity as Property Finders, we have noticed that whereas all but the most desperate vendors were being very bullish last summer, motivated vendors are now pricing competitively in most areas of prime Central London.

Technorati Tags: Camden house prices, Kensington and Chelsea house prices, London House Prices, london house prices rise, London property finders

Tags: Camden house prices, Kensington and Chelsea house prices, London House Prices, london house prices rise, London property finders