Your Money: Prime London property prices up 12.8%
Wed 24 Apr 2013
The average value of a home in a Prime area of London has risen by almost 13% in the last 12 months,according to estate agent Marsh & Parsons London Property Monitor.
Prime London refers to both Prime Central areas, comprising Chelsea, Kensington, Notting Hill, Holland Park and Pimlico, and NonCentral areas such as Clapham, Balham, Battersea, Barnes, Pimlico, Little Venice and Brook Green.
Non-Central Prime London that have experienced the most dramatic growth in the course of the last year, as a lack of supply in Central London pushes buyers and investors further afield. Prime London has now been outpacing Prime Central London for the past three quarters.
Peter Rollings, CEO of Marsh & Parsons, said:
Homeowners have seen their equity soar as a result of such significant price growth in the past few years. We are now seeing many of those seizing the opportunity to sell at prices that have recovered and in many cases exceeded the highs of 2007, and then re-invest in the same market, taking advantage of the historically low mortgage rates available due to the funding for lending scheme.
The relatively low increase in the value of Prime Central London property compared to its Non-Central neighbours means that theres never been a better time to buy in Prime Central London. The enduring appeal of a classic home in a central location will never go out of fashion.
The number of properties in the capital worth 1m or more has grown substantially, from 37% March 2012 to 46% this March.
Marsh & Parsons reports that many homeowners in Prime Central London are now taking advantage of these value increases to trade up into bigger properties. Home buyers upsizing in Prime Central London accounted for over a third (36%) of all moves in this area in Q1 2013 a 25% increase from the previous year.
By comparison, the proportion of first-time buyers has not changed significantly in the past year. In Prime Central London the percentage has decreased by 4% in the past year, while in Prime London overall the proportion has grown by 4%.
Peter Rollings added: While some argue that increased Stamp Duty on higher-value homes is affecting the value of properties over 2 million, its reassuring to see the number of million pound homes in the capital continue to flourish. We are continuing to see record levels of properties at this value and there is no sign of it stopping.