SAVILLS yesterday shrugged off fears that London’s high-end residential property market was in danger of overheating, after reporting an “unprecedented” two and a half years of price growth.
The property advisory firm said its prime London residential property index shows 10 quarters of single-digit growth, marking a period of stability not seen since the index was launched thirty years ago.
Average price growth across prime London homes totalled 17.6 per cent since the end of 2010, it said.
Prices have risen 2.2 per cent in the first three months of 2013 – up from 0.8 per cent seen in the final quarter of 2012. Annual price growth now stands at 4.7 per cent.
“In historic terms, this rate of growth looks steady for a prime residential market and much less volatile than some other prime world markets,” Yolande Barnes, director of Savills’ world research, said. “It flies in the face of those who claim the market is overheating.”
Savills said central London has slightly underperformed the wider London markets over the last 12 months, with areas in the south west such as Richmond starting to catch up. Annual prices in the south west rose 5.6 per cent, compared with just three per cent in central London.