UK property still best bet in Europe

05 January 2007
The British property market will soar alongside high-demand France in 2007 while newer markets in the emerging east and south-east of Europe will cool, property specialist Assetz has predicted.

The 'hotspots' study expects London to lead British growth, with prices in the central business and residential areas of Belgravia, Mayfair and Knightsbridge doubling by 2017.

Britain's strong property market performance will be followed by France, with eight per cent growth during 2007, and Cyprus, with ten per cent growth.

Investors in Spain, Turkey and Poland will also have a good year.

"With the UK performing so well, many investors will be opting for the low-risk approach and keeping their money in UK property," Assetz managing director Stuart Law told Reuters.

"It offers strong returns that can compete on the international stage," he underlined.

Meanwhile, new figures released today by the Bank of England show that UK mortgage approvals increased in November to their highest rate in three years.

"There's a resilience in the housing market that a five per cent interest rate isn't going to dent,'' Geoffrey Dicks, chief European economist at Royal Bank of Scotland told Bloomberg.

"I don't detect any slowdown."

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