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Prime central London property prices hit new record

Posted by Richard in Property News, 23rd March 2010, 5:12pm

Prime Central Location real estate is back in favour with wealthy buyers from both from overseas and the UK according to web site Prime Location.  This in turn is buoying prices, despite the fact that there is more choice of property on the market than at any time since early 2008.
Prices in the most sought-after districts of the capital have risen by 2.4% this month, and 5.1% over the past year.  The average price of Prime Central London property that has now topped £2.2 million - a new record.  
Within inner London, the Royal Borough of Kensington & Chelsea saw Prime property values surge by 3.0% this month, and 3.2% over the year, to almost £2.5 million.  
There is strong interest in high value real estate from a variety of sources, with the very wealthy generally not constrained by the repercussions of the ‘credit crunch’ and indeed potentially benefiting from current low interest rates.  Those who raise funds against their share portfolios have been able to borrow more on the back of the recent rally in the FTSE.  
Overseas buyers are also showing their resounding confidence in the UK over the medium to long term, and indeed in real estate in the capital - notwithstanding concerns expressed over the country’s long term debt ratings and the fiscal measures the next government will need to implement to tackle the UK’s budget deficit.  Indeed, many foreign investors see now as a good time to buy with Sterling relatively weak against most major currencies and the market relatively slow with high levels of stock available.  Prime Central London has seen stock levels rise by 63% over the past 12 months and 8% since last month, according to the Primelocation.com Prime Index.
Andrew Smith, Research Director at Primelocation.com, says: “As the UK draws out of recession, but with the housing market remaining relatively quiet, astute buyers and investors from both abroad and the UK see this as a good time to find the right property, in the right location.