Flat prices in London

Robert McLaughlin, Regional Sales Director at Kinleigh Folkard & Hayward assesses the London flat market.

In London, flats were consistently popular with investors, first time and overseas buyers and made up 60% of all property sales for Kinleigh Folkard & Hayward in 2010. The London property market continually fluctuates and subsequently the first half of 2010 produced a strong number of property sales while the second half of the year was lower. The Land Registry’s November 2010 figures alleged that London had the greatest growth in the UK with an increase in property prices of 6.8% in 2010. These figures demonstrate the strength and resilience of the London property market compared to many other cities in the UK.

Though resilient, flats for sale in London under £300,000 are facing a tougher market. This is due to tighter lending criteria and lack of deposits for many first time buyers. Though some first time buyers are yet unable to step onto the property ladder, buy to let and overseas investors are continuing to purchase and support the flat sales market.

Currently Kinleigh Folkard & Hayward are experiencing the same level of buyers as in January 2010, and predict the number of properties sold in 2011 will be at a similar level to 2010.