Categorized | International

Housing Prices Rise Again in London

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While the rest of the United Kingdom continues to be faced with a struggling housing market, London has seen its residential real estate market thrive. According to data from the latest report, the London housing market hit yet another new peak in December. Home prices are now as much as seven percent higher than what they were during the peak before the real estate crash.

International investors and buyers provided a major boost to pricing and sales growth in the past month, helping the city overcome the credit crunch that continues to hinder the United Kingdom. Many of the most recent international investors have come from other European and Asian nations. Their interest in the London market has helped the city remain a prime market despite fears of the European debt crisis crippling the rest of the country.

Many real estate analysts are not certain that London’s housing market will be able to sustain its current growth and pricing levels due to the overall economic constraints. However, many of them have been expressing the same uncertainty for months while the market continues to grow stronger.

London is starting to develop a Manhattan-like reputation, in that residential real estate in the prime areas have essentially priced out everybody but the super wealthy. With only the richest international investors being able to afford to buy property in the prime areas of London, most of those who wish to live in the city have no other option but to rent.

As London’s property prices continue to increase, the city has essentially separated itself from the rest of the nation. There is still some doubt that the trend of rising prices will continue, though if history is any indication, it likely will.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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