What properties are selling in London?

Some analysts and experts have argued that London property is overvalued, while others believe that prices are justified by the demand and scarcity of property in the city. It is true that prices have risen much faster than incomes in recent years, which has made it difficult for many people to afford to buy property in the city. London property prices are among the highest in the world.

Many argue that London property prices are justified by the strong demand for property in the city, particularly from international buyers. London is a major global financial centre and a hub for business and culture, and as such, there is a limited supply of property in desirable areas.

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Predicting the future direction of London house prices is always a challenging task, as it depends on a variety of factors that can be difficult to anticipate.

The performance of the wider economy and Government policies can have a significant impact on the housing market, as changes in employment levels, interest rates, and consumer confidence can all influence demand for property.

It's worth noting, however, that the London property market has historically been quite resilient, and even in the face of significant economic or political shocks, prices have tended to recover relatively quickly. We are predicting house prices will remain stable this year and return to growth next year.

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Inflation does have an impact on UK house prices, as rising prices can lead to higher demand for property as a hedge against inflation. When inflation is high, people may look to invest their money in assets such as property, which can offer a more stable and secure return compared to other investments that may be more vulnerable to inflation.

Inflation also impacts the cost of borrowing, which can in turn affect demand for property. When inflation is high, central banks may raise interest rates to help control inflation, which can make borrowing more expensive and reduce demand for property. Conversely, when inflation is low, central banks may lower interest rates to stimulate economic activity, which can make borrowing cheaper and increase demand for property.

In general, inflation can be a key driver of demand for property, particularly as an investment to protect against inflation.