Central London homes now worth more than £2m

Sam Cordon

July 23, 2013

The research also revealed that the value of property in central hotspots, including areas such as Chelsea and Kensington, has risen by 9.3% in the past year and by 3.4% in the last quarter respectively.

Marsh & Parsons said that increased demand at a time of an acute shortage of housing stock is pushing prices higher.

During the last quarter 11% more buyers entered the market in competition for 14% fewer properties.

While transactions across prime London as a whole increased by 40% during the last quarter, the volume of transactions in central areas reduced by 38%.

Peter Rollings, chief executive of Marsh & Parsons, said: “It’s true that the imbalance of supply and demand is pushing property prices higher in prime London areas.

“But it’s also creating an excellent time to sell property. Helped by the rapidly improving availability of mortgages, buyers are queuing up for the chance to buy a prime London home.

“Property is changing hands in record time and for close to the asking price, with 98% of the asking price for prime London property regularly being achieved.”

In terms of property types, the property group which experienced the largest growth spurt last quarter were two-bedroom properties in prime London – with a 6% value increase compared to the previous three months.

The slowest movers were one-bedroom properties in prime central London, which increased in value by a relatively modest 1% in the three months to June.

Rollings said: “Two-bedroom properties in prime London offer substantially better value for money than smaller properties in the most central areas.

“Many first-time buyers flock to the village atmospheres of South and South West London in search of a place to lay down roots.

“During the current economic climate, many buyers are looking for longer-term investments, so larger properties in less central areas are becoming an increasingly attractive prospect.”

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