The company's specialists Ashton Rose believes that the rise in prices has affected a number of factors. Firstly, at the beginning of the year is traditionally paid annual bonuses, so the demand from high-paying professional services sector remained high. Secondly, the political tensions in the Middle East and North Africa has prompted wealthy Middle Eastern businessmen to invest more actively in real estate in England. Finally, there was a significant outflow of capital from the CIS, which has created additional incentives to increase prices.
Related article: Americans solve problems with a mortgage, making homes in billboardsThe situation in the property market in London, according to Ashton Rose, is more favorable than c position in the market in England as a whole. According to latest reports, real estate prices in the capital rose by 4.3% in the first quarter and 2,2% in annual terms. For comparison: the corresponding figures for England were: 1.6% and -0.8% respectively. At the same time on some areas of London (City of Westminster, Kingston-upon-Thames, Camden, Wandsworth) quarterly growth was from 6,0% to 13,6%.
Nevertheless, high unemployment and rising inflation in the next two years will have a negative impact on the real estate market in England. According to experts Ashton Rose, the pre-crisis levels of prices can be achieved solely by demand from foreign investors.