Multi-million pound properties on the up as London prices soar

PROPERTY prices in the capital are booming, and show no sign of slowing as a side effect of economic gloom, two separate studies released this morning have shown.

According to LSL Property Services, London house prices are 3.1 per cent higher than last year, bucking the overall downward trend that saw property prices slump 0.5 per cent over 2011, with Wales the only other region showing growth.

London was also a hot spot for ultra-prime property sales, with 9,704 London residential properties on the market for £1m or more during the third quarter of 2011 – a three per cent increase on 2010.

A study by Investec Specialist Private Bank found that the average cost of a multi-million pound house or flat in London is now £2.77m, with 96 properties on the market valued at over £15m.

The LSL study also found nationwide property prices had started to rebound in December, with a modest 0.2 per cent rise month on month.

“The final month of 2011 saw a modest rise in prices, which rounded off a year of economic turmoil in which the property market showed remarkable resilience,” commented LSL director David Newnes.