Press Release: Value of one-bedroom properties in Prime London rises by over 60,000 in a year
Tue 05 Nov 2013
- One-bedroom properties in Prime London have appreciated by 6% in the last quarter, and by 14% in the last year
- One-bedroom properties are very popular with first-time buyers and buy-to-let investors, spurred on by low interest rates and Help to Buy
- Prime London property overall has risen by 1.6% in the past quarter, 10.3% in the past year
The average value of one-bedroom properties in Prime London has risen by over 60,000 in the past year, following a 14% annual growth, according to estate agent Marsh & Parsons latest London Property Monitor.
The bulk of this increase was gained in the last three months, after a strong 6% quarterly rise increased the average value of one-bedroom properties by an extra 29,140. This follows three strong quarters of growth in the past year, contributing to a 14% annual growth equivalent to 62,063 in a year.
The average price of a one-bedroom property in Prime London now stands at 502,139. In Prime Central London, covering the most expensive areas of Chelsea, Kensington, Notting Hill, Holland Park and Pimlico, the average value of a one-bedroom property has risen to 583,036 a 9% increase in the last year, equivalent to 48,703 in a year.
Peter Rollings, CEO of Marsh & Parsons, comments: "With returns like these, its no surprise that people are queuing up to buy Prime London property. Competition for one-bedroom properties in particular is fierce. Spurred on by the rapidly improved availability of mortgages and low interest rates, first-time buyers are flooding the market in competition for the best properties in this price bracket.
"In addition, one-bedroom properties the best rental yields, making them a popular purchase for buy-to-let investors. We have noticed many young, would-be buyers adopting more European attitudes to renting, with many choosing to become long-term renters, rather than saving up for a deposit. As a result, the value of one-bedroom properties in Prime London is shooting up the scale."
One-bedroom properties have risen in value at a faster rate than properties of other sizes in Prime London. The overall rate of growth in Prime London, reflecting all sizes of property combined, was 1.6% in the past quarter and 10.3% in the past year.
What 500k will buy in Prime London
By comparison, two-bedroom properties have appreciated by 10% in the last year in Prime London, and by 7% in Prime Central London. Three-bedroom properties have appreciated by 12% in the last year on average across both Prime and Prime Central London.
|PROPERTY TYPE BREAKDOWN||PrimeCentralLondon||Non-Central Prime London||All Prime London|
Strong price growth continues
In Prime London as a whole, property values have continued to rise, with prices climbing by 10.3% in the past year and by 1.6% in the last quarter.
However, for the first time in five quarters, the more expensive areas of Prime Central London have outpaced Prime London as a whole by experiencing a higher quarterly rate of growth. The rate of growth in Prime London was 1.6% in Q3, while in Prime Central London this figure was 1.7%.
|PRIME LONDON PROPERTY PRICE MOVEMENTS||Average Value||Quarterly Change||Annual Change|
|Prime Central London||2,040,387||1.7%||8.2%|
Supply and Demand
The number of registered buyers has increased by 6% in the last quarter, but for the first time this year, there has also been an increase in the supply of property to the market. While the volume of supply remains at a historic low there are still 17% fewer properties on the market than at the same time last year the ratio of supply to demand is beginning to stabilise.
Peter Rollings continued: "The ratio of supply and demand is the key factor which determines prices on the London property market. While interest rates remain low, Prime London property will continue to be seen as an attractive investment opportunity for both UK and overseas buyers, and prices will remain high.
"However, rather than create a bubble, we may find that Help to Buy actually stabilises prices by encouraging first-time sellers to put their properties on the market and take their next step up the property ladder. For the past three quarters, a lack of available property has created a high premium for those on the market, but the gradual increase in supply, which we are beginning to see now, combined with the wide volume of property development taking place, may start to initiate more 'normal' market conditions."
For further detailed analysis of Londons prime market, please see Marsh & Parsons accompanying London Property Monitor.
The Prime Market Monitor uses a repeat valuation methodology that tracks values in a robust and representative mix-adjusted basket of properties across Prime London in the main areas in which Marsh & Parsons operates. Prime Central London comprises representative baskets of properties covering Chelsea, Kensington, Notting Hill, Holland Park and Pimlico. Prime London comprises all areas in Prime Central London, and includes areas such as Clapham, Balham, Battersea, Barnes, Pimlico, Little Venice and Brook Green.
Supply and demand statistics are based on an audit of Marsh & Parsons registrations and instructions during the quarter. Buyer profile information taken from Marsh & Parsons quarterly MI data.
For further information please contact:
The Wriglesworth Consultancy, Julia Langsman / Neil Mackwood 0207 427 1441 / 0207 427 1400
Marsh & Parsons, a multi-award winning estate agent, has been part of the London property scene since 1856. With 19 offices situated in prime positions across central, west and south west London, they have an intimate and extensive knowledge of the area. Marsh & Parsons services include residential sales and lettings, property management, new homes, developments & investments, professional surveying and corporate & relocation services.
Marsh & Parsons was acquired by LSL Property Services plc in November 2011, but continues to operate as a separate business, retaining its current management team.
A business that is built on energy, agility, professionalism and knowledge, Marsh & Parsons business aim is to be the agent who not only understands the local area around their offices better than any other agent, but is also at the heart of the community. They believe that Local know-how will achieve better results and make the difference for their clients.