London bucks downward trend

While various property price indexes continue to show that residential property prices are falling nationwide, the market in London remains strong, thanks to robust demand and a shortage of housing stock, particularly new build homes. 

The latest house price index from the Halifax shows that average property prices fell 1.4% in April, compared to the previous month. There has also been a quarterly move down of 1.2% and a drop over the year of 3.7%.

The Halifax HPI now has the price of an average house as £160,395.

Last week the Nationwide index had home prices also falling but at a lower rate of 0.2% with an average price of £165,609.

The Land Registry, which only has figures available to March, has the monthly decline in prices at 1.1% with an average price of £160,996 with an annual fall of 2.3%.

But while average national property prices are generally expected to continue falling, the outlook in London is somewhat different.

The volume of homes for sale in London is low in relation to demand, partly due to a lack of new homes being built in the capital.

More overseas nationals and investors are actively buying homes in London, due to low interest rates, rising rental returns and a weak sterling, which makes London attractive for property investment.

Simon Godson, partner at WA Ellis, expects the market in London to remain robust.

He said: "Prices will remain strong - indeed average sales prices have risen by 5.8% since the beginning of 2011 across London . The last five deals we have agreed in the last two weeks have all been above the competitive guide price we set with more than one interested party bidding against each other in all cases."

New homes in London for sale:
Among the wide selection of new homes in London for sale, St George are offering properties in Imperial Wharf, located adjacent to Chelsea Harbour, featuring a range of studios, one, two, three and four bedroom apartments and penthouses, with prices starting from £182,700.

United House are offering luxury new apartments for sale in Barbican in a development called Frobisher Crescent. With attrctive views across the London skyline, Frobisher Crescent, a dramatic grade II listed semi-circular building, sits in the centre of the iconic Barbican Estate. The project features 69 new homes - a mix of studios, one, two and three bedroom apartments - with prices starting from £395,000.

Swan New Homes are offering properties for sale at Streamlight in Docklands. The new homes range from one, two and three bedroom apartments to exclusive three bedroom penthouses. Prices start from £295,000.