London property 'to gain in value next year'

Protecting valuable assets in London with landlords insurance could be an important consideration for buy to let investors next year, as it has been predicted house prices will see further rises.

Graham Lock, director of estate agent Housenetwork.co.uk, explained holding the Olympic Games in the city is bound to have an inflationary effect on the amount of money required to buy real estate in the area.

He forecast an increase in house prices of five per cent in the first six months of the year as the tournament approaches.

"Then it depends on the legacy of the Olympics," the specialist stated, saying that if the situation is managed wisely, another five per cent rise in the value of homes could be seen in the second half of 2012.

"Is it going to turn into a half-finished project, or are they going to get in there and really see that part of London come into it's own?" Mr Lock remarked.

While rising house prices could be a boost to landlords' capital gains, they may also see more rent from homes in London, with head of residential research at property consultancy Knight Frank Liam Bailey recently predicting the amount buy to let investors charge occupants in the city will jump by about five per cent per year from now on.

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Posted by Luella Ravelin