London Evening Standard : Price of average flat in central London breaks the GBP1m barrier
Thu 25 Apr 2013
The news came as two reports revealed a jump in prices in the first quarter of this year following sluggish growth in the second half of last year.
A report by estate agents Cluttons on? prime central London said that values rose by an average of 2.3 per cent in the three months to March.
This took the average flat to 1.01?million and all residential property to an average of 1.53?million, 6.7 per cent above the previous high recorded in the third quarter of 2007.
The biggest increases were in the central north-west area, including St Johns Wood, Maida Vale and Islington, where prices rose by 4.6 per cent to an average of more than 1.5?million. Residential property in central west - Hyde Park, Holland Park and Mayfair - now has an average price of 2.36?million, although prices rose by just one?per cent in the first four months of the year.
Sue Foxley, head of research at Cluttons, said: The biggest problem we are seeing is the lack of supply and that is driving up prices. Just to get on to the housing ladder in London, people are having to move further out and consider different areas than, for instance, the ones they want like Notting Hill.
She added: Future development is needed in areas outside central London but at the moment, the developments that are taking place are not necessarily the ones that suit families. In a report by Marsh & Parsons, the rises in central London had a knock-on effect in areas of non central prime London, such as Clapham, Battersea, Fulham and Brook Green.
The report looked at so-called prime London, covering central and non central areas and found that 46 per cent of properties had been valued at 1?million or more in the first quarter of this year, up 43 per cent on the last four months of 2012. It said prices rose by 12.8 per cent in the past 12 months, while the gap between the central and non-central areas was closing? rapidly. Peter Rollings, the chief executive of Marsh & Parsons, said: South of the river, places like Balham and Streatham, are doing really well. People are realising they are having to cut their coats according to the cloth.