London prices up, but market still slow

While average house prices in the UKs largest city have risen recently, there is still a lack of activity, an expert has noted.

The difficulty in finding a buyer may persuade some to improve their property rather than move to a new residence.

Recent data from Savills shows values in the capital have risen by 4.3 per cent since the beginning of April, but still remain 19.8 per cent lower than their peak.

Similar statistics from Knight Frank revealed prices have fallen 20.1 per cent in the last 12 months.

Commenting, London Central Portfolio chief executive Naomi Heaton said it is not a lack of finance that is holding the London market back, as it is in other parts of the UK.

Instead, she explained, it is "timidity and negative sentiment" on the part of buyers.

Homeowners jaded by negative reports on the property market may decide to modify their existing home, rather than buy a new one.

Among the possibilities for upgrades are conservatories, folding sliding doors and rooflights.