The Times
House prices in the capital have been one of the main drivers for growth this year (2007) and most analysts expect it to remain one of the strongest areas. Estate agency Savills thinks prices will rise by an average of 5 per cent in 2008.
Nationwide is forecasting 1 per cent growth in London house prices next year. However, Fionnuala Earley, chief economist at the building society added that there are significant factors, which will help underpin the market in the capital. She said: “The supportive factors for London prices are severe supply shortages, the positive economic impact of Olympic spending, and a likely continuation of demand for prime central London properties from overseas buyers, particularly those from oil-producing and emerging market economies.”
