Property values in prime areas of London have increased by a substantial 12.8% in the past year, following a rise of 3.6% during the first quarter of 2013, according to estate agent Marsh & Parsons’ latest London Property Monitor.
But it is actually the areas of Non-Central Prime London that have experienced the most dramatic growth, as a relative lack of supply pushes buyers and investors further afield. Continue reading
Values rose by 2.3% during the first quarter, taking the annualised increase to 6.8%, just ahead of the long run average of 6.7% per annum.
Consequently, the average price of a flat in prime Central London breached the £1 million mark for the first time, while the average price for prime residential property as a whole reached a new historic high of £1.53 million in Q1, leaving prices 6.1% above the previous market peak of Q3 2007. This translates to an average increase of £383 per day.
The best performing London region was Central North West, incorporating St John’s Wood, Hampstead, Maida Vale, Continue reading
“Fulham in particular has always been a popular area of South West London, but as house prices soar in Prime Central London, it has become even more attractive as an alternative for buyers in search of the PCL lifestyle at a more affordable price – on average a property in Fulham is likely to cost £850 per sq. ft. – whereas in PCL it is over double this at an average £1800 per sq. ft. As such, we’re seeing an incredibly strong demand, with several properties going to sealed bids.
“Fulham’s appeal can be attributed to a number of factors; Continue reading
Some of the other expensive streets in the Royal Borough include: Campden Hill Crescent with an average property price of £4,863,000, Blenheim Crescent (£4,728,000), Lansdowne Road (£4,693,000), Drayton Gardens (£4,428,000) and Eaton Square (£4,391,000).
Not all of the most expensive streets are in central London. Parkside in Merton, South West London, is the nation’s second most valuable address with an average house price of £5,161,000. Home Park Road, also in Merton, is the sixth most expensive street with an average property price of £4,685,000.
Away from the capital, the most expensive streets are in the leafy areas of Surrey, Hertfordshire and Kent. They Continue reading
London has experienced explosive growth in recent years, with prices rising by 24% since 2009 and central London seeing even higher appreciation of 47% over the same period. This growth has seen the disparity between the city and other regions growing, with the average detached house in London now costing 75% more than one in the South-East of England.
Central London growth has come largely from a combination of demand from overseas investors looking for a liquid safe-haven for their capital and foreign professionals moving to London for work. The rise in prices in the centre of the city has led to Continue reading
This, in turn, should lead to fewer ‘price reductions’ which have been very apparent towards the latter part of 2012.
“In the early part of 2013, we anticipate some restructuring and transferring of ownership due to the proposed annual charge and introduction of CGT on property priced at £2m and above and owned by ‘non-natural persons’. Investors would prefer to pay the 7% stamp duty on a transaction rather than the annual charge and have a CGT liability. We also believe that the Chancellor may introduce an exemption for British development companies and landed estates in his Autumn Statement on 5th December; Continue reading
For example, at Fitzroy Place, a unique new development with top-of-the-range specification, the average price per sq ft is £1,500 – £1,700, whereas the general market value in Fitzrovia is £1,150 – £1,350 per sq ft. Fitzroy Place can push the boundaries because of its design, location and appeal to both UK and domestic buyers/investors. In reality, however, a second-hand flat around the corner will not achieve these prices, especially in a market where buyers are much more price sensitive.
“As such, it’s been a tale of two halves this year; property that’s priced correctly has sold well – Continue reading
Tim des Forges, partner in residential sales at W.A. Ellis, comments: “The statistics and comparisons coming out of September and October’s sales activity are telling – September, although active, did not provide the volume of viewings we expected. Come the first week of October, however, the volume accelerated. The first week of half term was unprecedented, and is perhaps now bringing in buyers who avoided London during the summer’s events. This is illustrated by the total numbers of sales in prime central London in October, which are up by 35.81% on September. We suspect the reason for the transaction increase is Continue reading
The estimates show that the current shortfall between household growth and supply of housing will continue in both the central and wider London markets.
Funding constraints are expected to put an effective "lid" on development in the coming years, although in the wider London market, a rise in the volume of schemes being proposed will result in a slight increase in development volumes.
But demand for new homes, as a result of the continued rise in the number of new households being created, will far outstrip supply.
The London Development 2012 report finds that in the wider London Continue reading
“There is no doubt that the excitement and focus of the Olympics has increased interest in London from overseas investors; most notably properties up to £2,000,000. These are classic investment buyers who are consciously purchasing below £2,000,000 to avoid the higher SDLT threshold.
“The consultation period with regard to the impending annual ‘mansion tax’ and capital gains tax charges on company held properties priced above £2,000,000 has now finished and we await draft legislation which is due this autumn. It is obvious that many of our clients are reconsidering the structure in which their properties are held.