Financial Advisor: 1m homes on the rise, Marsh & Parsons study
Thu 08 Nov 2012
The proportion of properties worth more than 1m in London has jumped in the past year by 8 per cent, according to research by estate agent Marsh & Parsons.
Peter Rollings, chief executive of the London firm, said 43 per cent of prime area properties in the capital were worth 1m or more now, up from 34.6 per cent in September last year.
He added that the research had found that properties worth more than this landmark amount were no longer confined to locations in prime central London, such as Chelsea and Kensington.
"With the supply of homes especially constrained in the central prime areas, wealth has been over-flowing into areas such as Balham, Clapham and Brook Green."
The price rises seemed to be caused by continuing demand from international and domestic buyers as well as constricted supply.
Mr Rollings said: "Although the number of homes coming on to the market remains at a near historic low, it improved in the last quarter at the same time as buyer numbers fell.
"It is not yet a buyer's market, but easing competition has factored into slower quarterly price growth."
"It hasn't really affected us, it just means buyers need to find a bigger mortgage. There are enough lenders out there for this, private banks that are willing to lend to the right people. The problem is the lack of properties on the market at that level."
Andrew Montlake, director of London-based Coreco Group
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