London prime property prices rise

According to the latest index, Prime property prices in central London increased slightly, up by 0.8 per cent in the second quarter of 2015, the first rise since September 2014.

Pimlico has seen the strongest growth in the last year with values up five per cent or £66,000 compared with the second quarter of 2014, the data from estate agent Marsh & Parsons.

According to Propertywire.com, the second quarter has also seen a 17 per cent rise in demand for property in this sector but at the same time supply increased by only 10 per cent while overall 42 per cent of sales are now made by investors, a rise of eight per cent year on year.

At the same time, there has been an upswing in foreign buyers who accounted for 34 per cent of all sales in the second quarter of the year, up from 30 per cent in the second quarter of 2014 although then firm says this has much to do with European buyers of all nationalities coming to live and work in London.

Overall property in this sector costs 27 per cent more per square foot than across London as a whole with the average square foot of property in central locations such as Holland Park, Notting Hill or Kensington and Chelsea valued at £1,516, some 27 per cent higher than the capital wide average. In contrast, overall in Prime London, the typical price per square foot stands at £1,192.

READ ALSO – Labour London Mayoral candidate to ban ‘poor doors’ in London housing development

“The excellent capital appreciation and secure nature of property in prestigious central addresses of Kensington, Chelsea and Holland Park have long made them appealing particularly to the investor and it’s encouraging that we’ve seen such a rise recently,” said Peter Rollings, chief executive officer of Marsh & Parsons.

“Investors are a good gauge of the overall health of the London market. If there was any cause for concern about the future property market, investors would be upping sticks and moving elsewhere. But that fact they are still putting down roots in the capital shows how fertile current conditions are. While there may not be much action to see at the moment, prices are still growing, and the foundations for fruitful capital returns are strong,” he added.