London house prices kept rising in 2018, according to Savills

Written by by Naina Mishra, CNN London Written by Naina Mishra, CNN London Real estate prices can create a “metering effect” in which properties are marked up one year and then marked down in…

London house prices kept rising in 2018, according to Savills

Written by by Naina Mishra, CNN London Written by Naina Mishra, CNN London

Real estate prices can create a “metering effect” in which properties are marked up one year and then marked down in the following year as competition heats up, a property consultant has warned.

The phenomenon is present across all London boroughs and homes worth £750,000 to £1.5 million are often sold in the first quarter of the year, explained Marcus Overman, the senior director of commercial real estate and head of buying & selling at Savills in the city.

“It really is about the blurring of data — both the marker and the valuation,” he told CNN Business Traveller in an interview.

Natalie Mahlangu, head of property services at Savills, said homes are marked up by 1.5 to 2% on average over a two-year period to make room for the subsequent listings.

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“A year ago we were selling luxury London homes at prices of between £1.5 and £2 million,” she told CNN Business Traveller in an interview. “Ten years ago they were selling for £300,000 to £500,000. At the same time (people) are now selling homes at £2.5 million because they want to move out of London and buy in what they call the “second city.”

“Now it’s “sources of water,” she said — “and prices will go up and down year on year.”

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