The latest figures released by the land registry indicate that the growth in property prices in London is now spreading more evenly across more of London’s boroughs, however demand for high-end prime central London properties remains somewhat subdued. This segment of the market, that has seen prices soften considerably over the past 12 months, is becoming particularly interesting for long term investors. Valuations are expected to remain at these levels throughout the summer, however the fundamentals remain strong so an upturn could be round the corner.
On a macro level the UK economic growth accelerated in the second quarter of the year, helped by a big jump in oil and gas production, official figures released by the National Office of Statistics have shown. The UK’s economy grew by an estimated 0.7% in the April to June period. That compared with growth of 0.4% in the first quarter of the year with analysts expecting a full year growth rate of 2.6%.
Given these positive economic figures, the key focus re shifts on interest rates. The steady growth of the economy may give the Bank of England more confidence to intervene before the year end, however expectations are still for a modest increase in Q1 of 2016.
