Mortgage customers looking at property in central London should expect the purchase to act as a solid investment.
According to London Central Portfolio, it is “entirely realistic” to expect further price growth in the capital, despite home values in the city standing at record highs.
Recent Knight Frank data shows that prime London property prices were up by 0.9 per cent in August and have now increased by 36.3 per cent since the post-credit crunch low of March 2009.
While there has been solid growth in the past year, the expansion that would have taken place is still being caught up, according to London Central Portfolio chief executive Naomi Heaton.
“Our opinion has always been that the market had not over-inflated prior to the credit crunch, but was in line with long-term growth projections following a slow start to the millennium,” she said.
“We therefore expect prices to catch-up to where they would have been had there been no credit crunch and this means accelerated growth above long-term averages of eight to nine per cent per annum.”