Flat prices increase in London

Prices for flats in London rose by over £18,000 in January, new figures show.

According to leading London estate agent Felicity J Lord, the average value for a flat in places such as Canary Wharf, Shad Thames, Wapping and Bow increased 0.7 per cent to £284,295 last month - a rise of £18,599.

Activity in the market rose as confidence in the market increased and record bonuses in the City seeped through into property prices.

"January is usually a busy time of the year for us," said Darren Box, Felicity J Lord managing director.

"Once the Christmas period is over, we often see a surge of interest as buyers who put off the search in December come back to the market with a vengeance."

Overall, the estate agent saw the number of transactions increase by 19 per cent.

Additionally, the amount of time it took to sell a flat fell, with the average flat spending 50 days on the market before being sold in January - four days fewer than in December.

And as demand and confidence increased, the average reduction from asking price dropped to 4.5 per cent.

"As expected, the pick up in demand in January has acted as a support to prices across the City," said Mr Box.

"As incomes continue to rise and city workers invest their bonuses in property, all factors indicate that London is heading for a revival. As such, I continue to forecast a rise across the City of as much as five per cent in the first half of 2006."

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