London leads way to market recovery
A GAP is widening between London and the regions as the dynamics of the London economy and overseas equity impacts on the prime housing markets, according to Savills.
Prospects for future recovery of the prime regional property markets will depend on the strength of local economies and equity coming out of London.
Savills has revised its 2011 forecast for London up from -0.1 per cent to a sunnier +8.0 per cent but they say that prime regional values are now expected to fall by -3 per cent across the year compared to an original forcast of 1.5n per cent.
Ben Pridden of Savills, York, says: “We are waiting patiently for the positive growth currently exclusive to London to reach us.”