If we examine the prices of houses in London over the last ten years, it seems to be the case that they are constantly going up. This is fantastic if you own one because there is no doubt that London property is a solid investment for the long and short term. Why is London so different from the rest of the UK? The answer is the fundamental law of supply and demand. Over the last quarter of a century, the population of the UK's capital has gone up by 20 per cent, and the number of houses in the city has not increased by anywhere near that level. More demand and less supply have the effect of a rise in prices.However, at the moment in five of London's most expensive boroughs, house prices are going down. In areas like Chelsea, Fulham, and Camden, the average property price has fallen by just under ten per cent, with Westminster seeing the biggest fall of around 14 per cent. The reason for this is that investors are looking elsewhere in the city, as there is a feeling that central London has 'topped out'. Now some of the quickest growth can be found in places such a Newham and Barking & Dagenham.
Buying property in London is considered by investors to be a 'safe haven' asset, and lots of people invest their money in houses throughout the city. The key to sound investment is to realise that the market in this vibrant city changes rapidly, and it is wise to follow the statistics and find the best time to buy in your area of choice.