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London property prices up 0.1% in April
12 May 2008
Average property prices in central London increased by only 0.1 per cent in April, new figures have revealed.
Research by estate agents Knight Frank found only properties priced between £2.5 million and £5 million and those over £10 million grew in value.
This, it said, is symptomatic of a slowdown in the market, and homes are now selling for an average of 96 per cent of their asking price compared to 102 per cent a year ago.
Liam Bailey, head of residential research at the estate agent, suggested a lack of mortgage financing is slowing down purchases.
He continued: "Although there is little expectation of a further cut in the base rate this week, the truth is that even if there were the effect would be limited.
"The real impact will only come once the Bank of England’s 'special liquidity scheme' has worked its way through the money markets and lenders feel confident lending to each other again."
Recent research by Propertyfinder.com has found location rather than cost is more important to potential tenants.
Nicholas Leeming, director of the website, informed investors that "top locations" could still generate big returns.
