July 2011 | Central London residential developers have become more confident during the first half of 2011. Confidence in selling units has improved. Central London apartment prices have increased during the first two quarters of 2011. Price growth of 1.3% in Q1 was followed by 1.0% in Q2 with upward price pressures easing slightly.

The central London residential market continues to be stronger than anywhere else in the UK. Despite the mortgage constraints and the squeezes on disposable incomes which are restricting market conditions throughout most of the country, the more prosperous and more vibrant London economy, supported by overseas demand, is proving to be a market apart.

Steady demand, from both home and abroad, is having to compete for scarce new supply and it is these opposing characteristics that are pushing prices marginally higher. However, upward price pressures are easing slightly and the market is certainly cooler now than it was at the start of the year.

Several new development schemes are continuing to sell well abroad but the parameters of success have narrowed in recent months. Only schemes in the best locations or with special appeal are being truly successful.

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