Pimlico leads Prime London growth
In the 12 months to Q2 2015 house prices in Pimlico have risen by 5%, or £66,000 on average. This is the first time since September 2013 that an area in Prime Central London has come out on top in terms of price growth.
For the whole of Prime London prices have fallen by 1% annually, however in Q2 prices increased by 0.8%, the first time they have risen since Q3 2014.
The data also found that investors strengthened their grip on Prime London property, as they made up 42% of Prime property purchases in Q2, up from 34% over the same period a year ago.
Peter Rollings, chief executive of Marsh & Parsons, said: “The excellent capital appreciation and secure nature of property in prestigious central addresses of Kensington, Chelsea and Holland Park have long made them appealing particularly to the investor – but it’s encouraging that we’ve seen such a rise recently.
“Investors are a good gauge of the overall health of the London market. If there was any cause for concern about the future property market, investors would be upping sticks and moving elsewhere.
“But that fact they are still putting down roots in the capital shows how fertile current conditions are. While there may not be much action to see at the moment, prices are still growing, and the foundations for fruitful capital returns are strong.”
In the three months to June 2015 demand for Prime London homes accelerated and the number of registered buyers climbed by 17%.
Over the same period, there has been a 10% boost in the supply of properties available on the market.
This mismatch means that there was an average of 12 buyers for every available property in June 2015 and this competition was higher in central areas, with 13 buyers for every property on the market.
Rollings added: “For many London buyers, the escalation of property transaction taxes at the top tiers of the market will have soured the taste somewhat.
“This will suppress some appetite in the market, and dilute the level of house price growth in the capital until buyers get used to this increased cost.
“The London market is likely to play second-fiddle to the rest of the country in the coming months, as it has more fine-tuning to do at the highest levels to sync with the new stamp duty system.
“We may have dodged the mansion tax bullet, but there’s no denying that London has been struck by significant regulatory changes, and given its position at the frontline of the UK’s prime property market, is having to absorb the impact.”