London property market cooling?
Published: 14-Jun-2007
The first signs that the market for luxury homes in London could be cooling have emerged.
Property broker Knight Frank has suggested that prices in the capital may only increase by around 20 per cent this year, compared to 29 per cent in 2006.
Similarly, the agent reported that demand for high-end property in London could be cooling somewhat. Since March, the average number of people registering their interest in available properties has fallen from 32 to around 20.
"Our data reveals some indications that the market may well be close to its peak in London," Liam Bailey, the company's head of residential research, told thebusiness.co.uk.
"A shift in demand and supply appears to be beginning which if it continues will begin to see a move away from a sellers' to a buyers' market."
Despite this cooling, premier property in London remains some of the most expensive in the world. Homes in the capital can sell for up to £2,300 per square foot, compared to £1,600 in New York and £1,100 in Tokyo.
If the market does begin to cool, it could be good news for landlords looking to expanding to luxury lettings.
In May, primelocation.com reported that the average weekly rental prices in London rose by ten per cent over the year to the end of April. For prime rental properties, the growth was 14 per cent.
