London property prices continue their relentless upward journey

Cluttons are quoted today acknowledging that residential property prices in London rose by 2.3% in the first quarter and the average price of an apartment breached the £1m limit for the first time.  They anticipate prices to rise by 22% over the next five years.

This is probably true and is a demonstration of the lack of supply of properties on the market at any one time. With fewer and fewer asset classes for investment being of any interest i.e. stock markets, gold, gilts, bonds etc and the yield on cash being pathetic, the London Residential Property Market stands proud (once again) as the safe haven for investment.

The London property market is unique in the world and stands about 10-15% above the dizzy heights of 2007.  This is not only driven by local demand and buy to let investments but by a plethora of foreign investors seeking the security of the UK.

M. Hollande and his lunatic fringe are driving wealthy French investors to the UK, Switzerland are getting tougher with their immigration rules and London, despite the recent changes in fiscal legislation to the acquisition of property by corporate bodies, is still an attractive place to be.

The Germans thought that Berlin would be the centre of the universe and the French thought that Paris would follow shortly afterwards but how wrong could they be?  You go to Berlin if you have business there and to Paris if you want to sight see but London is the ‘happening’ place where all members of the family want to be for a variety of reasons; everything from cutting edge commerce to just ‘hanging out’.

If you have any spare cash or ability to extend your borrowings (assuming you have safe employment) invest in residential property and you wont go wrong (or at least that’s the theory).