Sealed bids and gazumping fuel London price rise

Foreign buyers are still making up a significant proportion of buyers in Central London as they move to take advantage of the weak pound.

James Hyman, Partner for Residential Sales, said: "The London market is currently in a bubble, driven by pent up demand from buyers and a shortage of property for sale. Sellers’ expectations are increasingly high which is reflected in steep asking prices, but buyers are not being put off.

"This situation is likely to be short lived, however, with unemployment still rising and an expected surge in forced sales approaching, as homeowners who bought at the peak of the market with high LTVs find they are unable to remortgage on similar deals. I expect to see the market drop off again in the autumn and urge prospective sellers to act now in order to achieve the best prices we are likely to see for a year."

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