Our clients will be interested in a new survey, published in March 2011. A reasonably positive view for house prices is given by the London School of Economics House Price Expectations Survey. The survey was carried out in conjunction with estate agents John D Wood and shows a difference of opinion between owner-occupiers and renters about Central London prices.
People renting their home said that they think prices will decrease by 1% over the next year and then increase by 11% in five years. Owner-occupiers believe that there will be an increase of 3% in the next year and an 18% rise in the next five years. Looking ten years ahead, the owner-occupiers think prices will have risen by 37% while the renters think the rise will be a more modest 26%.
It is dangerous to read too much in to one survey, especially one with a London flavour.