London in for a 'mixed time'?

Published 29th May 2008

London property market is in for a topsy-turvy time over the next 6 months according to Jones Lang LaSalle, the story in London is a mixed one for the remainder of 2008. It it’s latest report, the company claimed that, due to its affinity with the City, employment losses were likely to be greater than elsewhere in the UK. The report also said that because many Londoners have greater wealth and incomes, they are ‘more able to absorb tightening disposable income effects’.

A spokesperson for the company explained: “Contrary to popular belief, house prices in Greater London are currently falling at least as much as other parts of the UK, if not slightly more. Prices have fallen by 2.5% in Q1 2008 compared to 2.0% elsewhere. The situation in central London, however, and particularly in the prime markets, is decidedly better although even these markets are not proving totally immune from declining housing sentiment and prices.

“We are forecasting house prices in Greater London will fall in the order of 5-7% in 2008, marginally better than more northern regions and the UK as a whole. In prime central London we believe prices will also fall but by a slightly improved 4-6% this year. This is largely because buyers are typically less sensitive and reliant on home financing issues in prime central London”.

Source: ' Move Channel Ltd '

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