London, England -- (SBWIRE) -- 01/11/2011 -- Property values in Kensington & Chelsea and the City of Westminster rose by 0.7% and 1.5% respectively during November, according to the latest Land Registry results issued in late December. This means that average values over the 12 months to November 2010 are 8.5% and 11.4% higher than the preceding year. Meanwhile, England and Wales showed a drop in average price of 0.6% during November, a fall of £4,000 in the average price of a property since this time last year.
Naomi Heaton, CEO of London Central Portfolio, comments: “This year as demonstrated the resilience of London Central. Growth has been more substantial, more consistent and more sustainable than the rest of the UK. Despite alarmist reports, the run-up to holiday season saw the usual influx of wealthy international investors coming to London to do their Christmas shopping.”
Whilst the domestic market languishes with buyers struggling to pull together higher deposits whilst receiving lower multiples of salary for their mortgage, the wealthy international investor, with more ready cash, still recognises value and security in London Central.
Hugh Best, head of investment management at LCP says: “Quite apart from the continuing currency play, the globally high net worth recognise the diversification benefits of London Central residential real estate in their investment portfolio. It is not only a hedge against inflation and political or economic instability in their domestic region; it is also a proven performer during a time when stock market returns continue to fluctuate.”
Heaton argues that there is not a ‘ripple effect’ from the capital. “London Central does not blaze the trail for the rest of the country – it is simply a different market. Where national housing relies on employment rates and the cost and availability of mortgages, London Central stands apart. A playground for the rich and famous, international demand continues unabated and with limited stock levels, this scarce resource will continue to underpin prices.”
Original comment can be found at The Property Valuation Advisory
http://www.theadvisory.co.uk