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Prime London property prices continue to flatline

Adam Williams
Written By:
Adam Williams

Property prices in the most expensive London areas have continued to stagnate, new research has shown.

Data released by estate agent firm Marsh & Parsons found prices rose slightly in the second quarter of 2015, but growth has remained flat since September 2014.

It said prices in prime central London were 0.8% higher in June, the first increase since last autumn.

Some areas performed above the rest of the market. In Pimlico prices grew 5% in the last 12 months, adding an extra £66,000 onto the value of the average home in the area.

These prime areas also remain much more expensive than the rest of the capital. The average price for a square foot of property in locations such as Holland Park, Notting Hill or Kensington and Chelsea was valued at £1,516, 27% higher than the capital wide average.

Sales to foreign buyers continue to grow with 34% of all prime homes sold now owned by people born overseas. Many homes now simply hold wealth for those based elsewhere in the world.

“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.”