London’s market growth to fall in line in 2008

Property consultancy Knight Frank has predicted that growth in property prices in London will soon match the rest of the market. The firm reports that prime London will see growth in line with the UK mainstream market, and therefore for the first time for two years will cease to lead the market.

Knight Frank anticipates that growth in the UK property market for 2008 will amount to 3%, with prime central London price rises in line with this figure. Price growth in this market was just 0.1% in November.

Actual growth is likely to be as low as zero per cent in large parts of the prime markets. Once again the more expensive properties will deliver the best rates of growth, with some properties rising by between 5% and 10%.

According to figures produced by Halifax, the average price of a home in London is now over £300,000.