All UK regions saw price rises in Q1 of 2014, but the 18.2% annual rise in London is starting to raise bubble concerns and reduce London’s international appeal
The Nationwide Building Society’s House Price Index , released today, showed between 5 and 18% rises in property prices nationally, taking the average price of a property in Wales (at the bottom of the table) now at £139,911 and in London on £362,699.
While these figures are based on the mortgages that Nationwide itself offers, and hence leaves out cash transactions, they are broadly in line with other national indices. But are London prices looking too high? Quoted in Bloomberg.com, Johnny Morris, head of research at Hamptons, said this week: “As the global economy recovers and other asset and investment classes become less risky, prime central London is beginning to look fully priced, cooling interest from international buyers.”
Eye-watering prices include the newly launched phase 2 apartments within the Battersea Power Station development (pictured, above) with studio prices starting at £800,000 (US$1.33m, €966k) and four-bedroom apartments at £4million.
By Christopher Nye, Editor, OPP Magazine