Prime London House Prices
Tue 30 Sep 2014
Prime London House Prices To Stay Flat Until End Of The Year.
Prime London house prices will remain stable until the end of the year, according to estate agent Marsh & Parsons latest London Property Monitor.
Following a robust 11.4 per cent climb in prime London property values over the past 12 months - equivalent to163,973 - there has been a sharp drop in the rate of quarterly price growth across the capital, and prices are predicted to flatten until the end of the year.
The average prime London property has risen 0.5 per cent in value over the course of Q3 2014, less than a sixth of the 3.1 per cent rate witnessed in the previous quarter as growth tails off into a more sustainable trajectory than at the start of 2014.
House price rises have been steadied by rising supply of Prime London property on the market, up 13 per cent in the last three months. This has cooled the level of competition in the market and the number of registered buyers per available property in Prime London has fallen from 24 at the start of 2014 to 12 in September.
Peter Rollings, chief executive of Marsh & Parsons, comments: Weve 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 isnt terminal, but just a necessary pitstop in the long-term growth and sustainability of the market.
"And it doesnt mean were 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 per cent of the asking price is currently being achieved on properties sold.
In the hubbub surrounding the property market recently, seasonal patterns have been lost in translation. The majority of house price growth typically falls in the first half of the year, so this autumnal re-calibration is nothing new. 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.
Prime London Property Price Movements
There are still strong capital gains to be had across the capital, and house prices in outer prime London are climbing at the fastest pace showing a 14.5 per cent annual increase, compared to 9 per cent in prime central areas. Brook Green, Clapham and Balham are streaking ahead of the pack in particular, with annual growth of 22 per cent, 20 per cent and 17 per cent respectively.
One- and two-bedroom properties in outer prime London have seen the steepest annual growth, appreciating in value by 19 per cent in the past year. The average one-bedroom property in outer prime London has increased in price by 86,880 in the last year, equivalent to 1,670 a week two and half times the median London salary, currently estimated to be 658 per week.