London Central Portfolio’s chief executive Naomi Heaton rejects fears central London’s booming prime property market is about to go bust
‘Central London property: a bubble about to burst’ seems to be the headline of the moment. That infers prices have rapidly inflated and are about to collapse. But actually, what does a bubble really mean? Either the underlying growth trends are atypical and therefore unsustainable or the current market value is unsustainable.We’ve repeatedly argued this is not the case and that these headline comments are derived from firstly, a short termist snapshot view of the market and secondly, a lack of understanding that prime London Central (PLC), just six square miles of the most globally desirable real estate, is uncorrelated to the UK housing market. The factors affecting the UK housing market - mortgage availability, employment and economic confidence - simply do not apply to central London, which is no longer a nation capital but a world capital.
London is one of the few areas in the UK that has seem property rises over last couple of years and property market there is booming, mainly fuelled by overseas investors.
ReplyDeleteWhat House?