Andrew Stanford, head of Cluttons’ residential professional division, said: "We believe firmly that prices are set to continue their ascent in London over the next two years.
"One of the key reasons is an acute shortage of good housing stock on the market and the influx of overseas buyers who are still continuing to snap up properties and consequently push up prices in the capital. In addition we expect this growth to continue well into 2014, as the City continues to recover and employment increases.
"The UK’s slow exit from recession has created some optimism in the general economy but recovery will not be swift, largely due to the Government’s large fiscal deficit and an expected 3% increase in the base rate over the next two years."
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