Price growth in Prime Central London recovers
Prime Central London (PCL) prices recovered in Q2 after two years of stagnation, data from the Land Registry has shown.
Average prices in PCL saw a quarterly price growth of 7.9% to £1.95m, with sales volumes experiencing an annual increase of 4.8%.
However growth in the buy-to-let sector was the most sluggish with a 1.3% increase in average prices for property under £810,000.
Naomi Heaton, chief executive of London Central Portfolio, said: “The increase in average prices appears to reflect a greater proportion of high value properties being sold, rather than any significant underlying growth.
“The buy-to-let sector, on the other hand, is seeing a much slower picture as investors continue to adopt a wait and see attitude.”
The data analysed by London Central Portfolio in conjunction with Acadata suggests that the increase in average prices can largely be attributed to a surge of high value sales.
England, Wales and Greater London continue to see falling transactions and slower overall price growth with increases of 0.27% and 4% respectively.
“Despite government measures to reduce Stamp Duty for 98% of the market and schemes to promote activity such as help to buy, weaker sentiment and restrictions on borrowing continue to impact on the domestic market in England and Wales.”