London Serviced Apartments Spearheading Economic Recovery-00-5383

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Property prices throughout the UK are set to retreat even further next year before the recovery can begin over the next decade.

Those who bought their houses during the 2006-2008 period are worst affected, as many will currently have a negative equity on their mortgage and house prices are not expected to fully recover until 2020. It is estimated that in some areas, housing prices have decreased by as much as 20% since 2007.

The country’s financial woes have many possible causes - the shortage of available mortgages, the difficulty that many first time buyers are experiencing when it comes to securing finance for first and the dreaded pay freezes that are not in line with the increasing cost of living, to name but a few. First-time buyers are now generally expected to put down a deposit of 20%, whereas prior to 2007 a deposit of only 10% or sometimes even less than that was sufficient to secure a property. It is predicted that the availability of mortgages will return to a healthy level in line with housing demand but that is likely of little comfort to those struggling to get a foot on the ladder now.

However, ...
... in London it’s a very different story. Housing prices are rising in the capital, meaning those who own property -including London serviced apartments - are leading the recovery. The city’s strong business services sector means that it is less dependent on the public sector than most other areas of the UK and although the rate of growth is not as high as pre-2006 levels, serviced apartments London are still proving to be a strong investment.

This means that London outperforms the rest of the country in both the corporate and private property markets. Occupancy is up, which in turn has increased investment levels in London. Serviced apartments London have never been busier and their owners are reaping the benefits.

The most recent report from the Royal Institute of Chartered Surveyors (RICS) supports this:

“The housing market was pretty flat during June. Buyer interest in purchasing property remains relatively low across much of the UK and the volume of new stock coming to the market has slackened. With continued uncertainty over the jobs market and the economy, this subdued picture is set to continue. London, however, remains a market apart with both sales and prices showing a greater degree of resilience.” RICS housing spokesperson, Alan Collett

The number of apartments being converted to serviced apartments London is steadily rising and is only hindered by stagnant markets in pockets of the less desirable districts. The east of London, however, has seen great demand due to the upcoming 2012 Olympics.

It is hoped that the shortage of houses will underpin house prices in years to come and it is predicted that the availability of mortgages will return to a healthy level in line with housing demand and aid the recovery of the rest of the UK.

About the Author:

Despite the recession, http://www.silverdoor.co.uk/serviced-apartments/london have never been stronger. Specialist http://www.silverdoor.co.uk/ agency SilverDoor can provide you with apartments in the UK capital and worldwide.