The London residential property market is now in better shape as home values and lease prices rise again after it barely changed last Easter.
London property agent and manager John D. Wood & Co. tracked property values and found out that large houses (houses with more than an area of 3,500 sq. ft.) in the prime parts of central London which fell by about 40 percent between 2008 and mid-2009 recouped their losses today, marking one of the sharpest and quickest recoveries in the housing real estate market in the recent decades.
Even when compared to North American standards like Manhattan, the cost of accommodation in West London can be considered expensive. The asking price on a three-bedroom, 3,000 sq. ft. apartment in the Eaton Square in Belgravia is £7 million ($11 million) or a lease price of $58,000 a month.
Grosvernor Ltd. Chief executive officer Mark Preston said that one of the major drivers of the residential property revival is the supply constraint of houses. During the recession, the construction collapsed, resulting in a meager supply of houses today.
Preston also said that aside from the supply shortage, political turmoil such as the Arab uprising also contributed to the market’s recovery. The conflicts convinced wealthy foreign investors to diversify to London properties aside from gold and silver because of their liquidity.
However, though London is recovering, its neighbors are still in recession. The latest figures from the UK Land Registry office show that of the eleven regions in England and Wales, London is the only area which experienced gain from January to March this year. The worst-hit areas are North East (down by 9.3 percent), Wales (down by 7.2 percent) and Yorkshire and the Humber (down by 5.3 percent).