London property prices are still doing well compared to other areas in the UK. They saw an increase of 4.9% in the last tax year whereas the rest of Britain was up by just 1.4%. This means that an average house in London is valued at £388,000, a whopping £159,000 more than the average UK house price. This doesn't mean to say that prices have recovered from the dip five years ago, but considering the country is in a recession,
The atmosphere in London at the moment might have something to do with its bouyency. It is experiencing an unusually patriotic time, with Union Jack bunting visible (even if just in the peripherals) at all times. The Olympic hype is unavoidable and it seems even a bit of rain cannot dampen spirits among the residents, workers and tourists. The long daylight hours are frankly the icing on the cake.
It seems that every man and his dog sees London's charm and overseas investors are helping to strengthen the economy by buying into it. Knight-Frank, a London estate agent say that eastern European and Russian buyers are spending the most. Followed by middle Eastern and Asian buyers. Fears of Spain, Greece and Italy playing catalyst to a European economic melt down could mean that investors splash their cash elsewhere and London could lose some attention. But, London has proved itself resilient to the harshest of economic climates in its past and it seems to continue to stay strong despite the financial chaos in and around it.