Prime London plateaus
The ratio of buyers per property has dropped to 12 while supply has increased by 13% in three months.
Prime London property values have risen by 11.4% in the last 12 months, amounting to an increase of £163,973.
Peter Rollings, chief executive officer of Marsh & Parsons, said: “We’ve reached a plateau in the course of house price growth, and the path paved out for London property prices for the rest of 2014 looks to be levelling off. This isn’t terminal, but just a necessary pitstop in the long-term growth and sustainability of the market.
“And it doesn’t mean we’re in for a quiet winter either. Sales will continue, albeit at a more ‘normal’ level, as buyers revel in the greater choice on offer, and without the frenetic competition many faced at the start of the year.
“With more realistic pricing sellers are prospering too, and on average 98% of the asking price is currently being achieved on properties sold.”
Outer Prime London has climbed at the fastest annual pace of 14.5%, with Brook Green, Clapham and Balham seeing prices grow by 22%, 20% and 17% respectively.
Average one bedroom property values in Outer Prime London have increased by £86,880 in the last year, the equivalent to £1,670 a week.
Rollings added: “Price growth may have paused to catch its breath, but come January we expect the heartbeat of the property market to quicken again as growth awakens for another healthy year.
“But as thoughts fast-forward to May and electioneering ramps up, caution will be exercised by many homeowners and would-be investors, as high-end property is marked out as a key battleground.
“Wading in with a ‘mansion tax’ threatens to douse the growth at the top tiers of the market, and in London especially, thousands of ordinary families would get swept up in its wake.
“Packaging it as a levy on ‘mansions’ is misleading – across the capital, it is tricky to find a home big enough for your average 2.4 family without a million pound price tag.”