Property News - New home builders expect new homes in London to appreciate in value in 2012

Property News - New home builders expect new homes in London to appreciate in value in 2012

Property prices in prime central London are expected to continue rising next year, according to the latest forecast from estate agent Knight Frank.

Knight Frank projects that prime central London prices will increase by an average of 5% in 2012. The property consultancy expects to see longer term price appreciation of 24%, on average, by the end of 2016.

Liam Bailey, Knight Frank's head of research, said: "Prices in prime central London are currently at an all-time high, despite which we believe there is scope for further price gains over the next 12 months, averaging 5% across 2012."

Bailey added: "The reasons which have underpinned recent growth - a weak pound, renewed wealth-creation in emerging markets, the search for safe-haven assets and flight capital - all seem set to continue, at least in the short term, reinforcing our positive view for next year."