London Property Prices Increase Despite Economic Slowdown

LONDON - House prices in prime areas of London increased by 0.94% in February, the
fourth successive month of rises, according to Primelocation.com’s monthly
house price index.

Asking prices in February rose across four of the five prime London
regions, with the largest monthly increase recorded in West/South West London
(2.84%).

Central London is the only region to still record positive year-on-year
growth (3.24%).

Outside the Capital, prices fell again for the seventh successive month,
bringing average asking prices down 0.39% on January 2009.

Andrew Smith, Primelocation.com’s Head of Research, comments: “This is
the fourth successive month that the Prime Index has recorded growth in the
London market, a trend which is being driven by a decline in stock levels and
the return of positive annual growth in Central London.

“Central London has always been a magnet for international capital and at
the moment lower prices and the weaker pound are attracting overseas buyers
in search of bargains. The recent cut in Base Rate to 0.5% will keep the
pressure on the pound, so this is a trend which we expect to continue in the
months ahead.

“Interestingly, the markets closest to London have yet to show any signs
of stabilisation. Indeed, over the past six months the South East and the
South West have been the poorest regional performers.

“Both regions have long been popular with City buyers and a flood of
bonus money has buoyed these markets in recent years. But the credit crunch
has slowed this specific trend and this has had a negative impact on prices.

“With overseas buyers likely to remain focused on Prime Central London,
we do not expect a significant ripple effect from the Capital into
surrounding regions until confidence among UK buyers begins to pick up.”

The full Primelocation.com Prime Index is available to read at
www.primelocation.com/houseprices/.

Notes for editor:

Primelocation.com is a property website containing information on UK and
international properties for sale, estate agents, news and views about the
housing market.

Contact Details

Christopher Evans
Primelocation.com
christopher.evans@primelocation.com
+44(0)207-534-2609

Source: Primelocation.com

Contact Details: Christopher Evans, Primelocation.com, christopher.evans at primelocation.com, +44(0)207-534-2609.