The prices of Luxury house properties in London has increased by 2.1 % currently in the month of December 09 and it has achieved the status of strongest estate market among UK markets as per the current reports.

The effect of latest bonus tax levied on the banks shall have least effect as indicated by comments by international consultants about Prime Central index London.

As a consequence of the announcement of Bonus Tax there were many transactions in the range of £800,000 to £1 million prices of which fell down immediately a temporary effect thereafter the prices have improved. Good number of new transactions has been recorded at higher prices in the same week.

Increasing Trend of Prices:

In all prices have increased by 13.8 % after March 09. These are still at a low level, as compared to March, 2008. The particular areas, which are strongest are located at Chelsea, Kinsington and Knights bridge with recording 3 % increase as compared at prices of last month level.

Residential property market got revived by an excellent upward movement of prices in 2009. There was increase of buyers by 25 % during the year 2009 in comparison to 2008. This is due to buyers from Russia, Europe among Italy was a major contributor. There were buyers from Middle East countries also.

The latest months’ reports indicate prices of very expensive properties in the range of £5 million to £10 million and more have witnessed positive increase in the prices touching 2.6 % price growth. The beginning was marked in £2.5 million price tag market during the period of spring.

Role of Foreign Buyers:

There has been substantial rise in inward investment from foreign buyers, primarily with interest to take advantage of weak pound and presence of overall lower prices. Influenced by economic improvement of the city, there has been increase in the traditional buyers also routing their transactions through local bankers, availing finance from hedge funds and playing of private equity houses again in the market.

The summarized account of the year about to end, it shall be ending with positive results i.e. demand of new buyers has registered an increase of 25 % however the supply is closing at 18 % increase.

The Bitter Competition:

The investors and occupants of properties are in a tug of war in competition to find the best properties, due to the supply position not up to mark, there is competition in bidding amounts.

If the market is looked from short term prospective there is a positive note. For long term there are many factor influencing it like the out come of election and declaration of emergency budget.

The UK market is likely to have suffering outcome at high end as well as entry levels as a result of certain measures Government revealed in its pre-budget announcement

Bank Bonus Hitting Market:

The UK property market will suffer at the high end and at entry level from measures announced by the government in its pre-budget statement, it is claimed.

There warnings about ten thousands of potential sales shall end half way due to duty holiday scheme ending on 1^st January 2010. Effectively there shall be old level of tax shall be restored at the same time the effect of bonus tax on banks shall also affect these properties in the beginning of next year 2010.

Buying property is not a very easy task especially when you are going to invest your hard earned money. For home owners as well as financial institutions the concern is still there when there is no foreseeable solution. For buyers who are purchasing house for the first time it is difficult to find a good home. Couples in Britain are nowadays recommended to buy property as an investment scheme. Builders prefer to work on large projects to have greater profit margins. Hence that indirectly implies bigger houses.

One must identify the budget for purchasing a house at first. A mortgage is needed and hence one must have a clear idea of the borrowing amount. It is then only one can offer a good price on the property. The lenders calculate on multiples of income to check your purchasing power. This signifies they check prices based on 3 times a persons salary. If it is purchased jointly then it is 2.5 times the joint salary. It is advisable to consult a Capital management Group Independent Mortgage Advisors. These people are professionals and they can assist you taking your future plans depending on your income level, savings, employment prospects, tax commitments etc.

You must also count the fees to be charged by the solicitor. The solicitor takes his fees based on the kind of property you are heading towards. There are a list of expenditures that the solicitor adds up like the disbursement expenses, stamp duty, the price of your property, the registration fees for the land, the search fees taken by the local authorities, the bank transfer fees and any other costs incurred while the deal is being done.

A main thing of worry is the cost of living growing higher in London as compared to the other parts of United Kingdom. The property which you can afford is hard to hunt. However, new development schemes show some hope in near future for better properties at reasonable prices in London.

London being a big metropolis, buying property can be a challenging task. London has areas each different from each other in culture, house price and location. The demand for property and house is huge in London. In comparison to the demand the supply is relatively low. Hence the purchase price of the economy of London properties is high. It is recommended to keep your eyes open and get the best deal for property at the right time for a right place.

To choose a residence in London which will prove to be the suitable property is a tedious and confusing job. To get a good price most purchasers look for properties in areas where transport is a bit less or places which are developing and have good future prospects etc. To live in east London you can purchase great places. These areas are in competition as they comprise of studios, Bangladeshi restaurants and other small shops here and there. The East London areas are Brick Lane and Spitalfields. The property projects in these areas are developed and improved. There is provision for trader’s market, public areas and a collection of young creative artists over here. The taste of Asia can be seen prevalent over here. The east if London has really become very popular in choosing for a residence to live life at.

The place called Canary Wharf is also a very suitable place to purchase property in London. This is one of the most developed and cosmopolitan area in London. The architecture is modern and stylized over here. This place is residence of more than one hundred de signers, designer stores, fashionable taste and trendy malls. There are even provisions for comfortably shopping underground during winter months. Simply sit and decide what kind of lifestyle you wish for you and your family. And then start searching the job of purchasing the right house.