High end property increases in value

Top end properties soared in value by 0.9%, or £4,043, last month, despite the UK’s fluctuating property market according to research by property website PrimeLocation.

Several areas have seen a monthly increase in prime property asking prices – with the exception being the North East. Over the last year however, the North West saw the biggest surge in prime property prices outside of London, growing by 7.5%.

Homeowners in London, with properties ranked in the top 25% in terms of value, now command an all-time high asking price of £1,307,801.

This represents a staggering £158,047 increase when compared to last year. In the UK as a whole, the average price of prime properties is £478,797, up by £21,756 since last year.

Properties in the South West London borough of Wandsworth proved to be a shrewd investment, as prices leaped by 29.3% in a yearly comparison.

“As the bad news rolls in from outside the UK and the economy stutters, the prime market has been marching on regardless as the UK’s wealthiest home owners continue to prosper,” said Nigel Lewis, property analyst at PrimeLocation.

The upward trend for prime property prices continued in several London boroughs in the last 12 months. Following Wandworth’s 29.3% increase was Lambeth (23.8%), Barnet (22%) and Hammersmith and Fulham (20%).

“The highest priced homes in London are rarely owned by average Brits, which is why the prime London market behaves so differently to the rest of the UK,” added Mr Lewis.

“Demand from wealthy overseas investors has, and will continue to, keep this prosperous market afloat despite the sluggish economic performance seen across the rest of the country.”

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Posted by: WarrenWilson Categories: Estate Agents, Finance, Latest News Tags: , , 3 Comments

3 Responses to High end property increases in value

  1. avatar Sally says:

    I firmly believe that the London property market should be dealt with completely separately in terms of house price statistics. Outside of London, property continues to fall in value – a correction which many believe is long overdue and necessary. But for those who are still trying to maximise the sale price of their homes, these figures are extremely misleading. They are simply not true! Including London prices in the national average falsely over-inflates figures countrywide and causes long-term disappointment for those trying to sell at too high a price because they believe what they read as opposed to what’s actually happening with sold prices at the land registry. All it takes is a simple look at ‘sold prices’ on Zoopla to see how ridiculous these published ‘national average’ house prices really are. When London homes are going for an average of £1.3 million, of course it’s going to affect the national average if those figures are included. But step outside the rarefied zone within the M25 or North Circular Road and the story is very different.

  2. avatar GEORGE DUDA says:

    Take account that these are asking prices, not necessarily selling prices. Enough said.

  3. avatar Chris Longley says:

    Prime properties will increase in value as the gulf between the richest and average wage earners increase. That fact is backed up by enough evidence both sides of the atlantic.

    Property prices have FALLEN on average terms this year and are still falling. Only equity based sales are prevalent on a very slow market.

    With predictions of a 2008 like economy this year, the ongoing Eurozone crisis and vendors holding for higher prices its going to have a downward effect on housesales and values.

    You wait until the real austerity cuts come!