London 'will lead property price growth'

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London 'will lead property price growth'

Mon 9th May 2011

Price gaps on new-build properties in the North and South will widen due to higher international demand in London, an expert has claimed.

Managing director of newhomesforsale.co.uk Vernon Pethard predicted price growth will be led by London and the south-east of England due to a lack of new homes being built despite high demand for properties.

This comes after LSL Property Services revealed plans to extend its land and new homes department because it believes the industry will see significant growth in the next year.

Acknowledging an increase in the number of land banks in the UK over the past 18 months, the company has predicted rapid expansion for the property market.

Mr Pethard said: "Achieved new home sales prices could increase across some parts of the country, even where the market is slow, simply because more expensive new houses are being constructed, rather than flats."

He also noted a shortage of good quality family housing at the moment, as well as an increase in the number of property developers changing planned new-build flats into houses.

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