London house prices 'up ten per cent in a month'
House prices in London are now booming so much that asking prices have jumped 10.2 per cent in the past month, according to new data from property website Rightmove.
After a summer lull in the capital in which demand and prices dipped by 4.3 per cent in August and September, the metropolis is booming again.
Rightmove director Miles Shipside said: "This month’s rebound in the number of sellers brings the quarterly growth figure back into line with the recent trend at around two per cent a month.
"Although not sustainable in the longer term, some agents currently report there is a buying frenzy in parts of prime inner London, with available stock so low that their shelves are now bare."
Of course, such a figure may be of less concern to those outside London, where some may even be irritated to read headlines focusing on the capital when increases in price are so much lower elsewhere. Nonetheless, the fact remains that with so many people living and working in London, there are many people - including investors in buy-to-let - who have good reason to be interested.
Mr Shipside noted that as London is seen as a "safe bet" for property investors, such price increases are inevitable. Some landlord insurance customers may decide this gives them two good reasons to expand their portfolio in the capital. Firstly, higher prices mean more people will have to rent because they cannot afford to buy, while further price rises will mean the property can be sold in the future at a tidy profit.
In the latter instance, this sale may not happen for a long time, but the ability of London to withstand the economic crises that may occur every so often could increase the options of when to sell. By contrast, investments elsewhere may be cheaper, but local economies and property prices take longer to recover.
As an example of how the capital has outperformed the country at large, Office for National Statistics figures have shown that in 2010-11 the gap between the rate of new businesses starting and existing ones folding was 4.2 per cent, more than any other region, while London's inactivity rate reached a record low of 23.1 per cent in the fourth quarter of 2012.
About the authorEddie Hooker has been involved in the insurance industry since 1985. He worked with many large insurers such as Legal & General and AXA Insurance prior to setting up his own insurance business, Hamilton Fraser, in 1996. Hamilton Fraser now employs over 130 staff out of their North London office, dealing with various insurance products for the buy-to-let property market such landlord insurance, rent guarantee insurance, emergency cover and tenancy deposit protection.
Eddie and Hamilton Fraser Insurance first started to provide landlord insurance as early as 1996 when they became involved with the Small Landlord Association, which later became the National Landlords Association.
By working closely with the industry’s leading companies Eddie and his team have built up a detailed understanding of the landlord market ensuring that the customer experience is founded on knowledge and support. This has been highlighted in a recent customer survey that found that 95% of Hamilton Fraser customers were either satisfied or more than satisfied with the service provided by the company.
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