Prime London property prices still soaring up

Ben Southwood
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PRIME <a href="/house-prices">London property</a> registered another quarter of booming growth in the three months to September, estate agent data revealed yesterday.

Prime property prices grew 0.5 per cent between the second and third quarters, capping off growth totalling five per cent over the year, the research from Savills showed.

Contrasting with the picture in much of the country, this means prices are some 45.8 per cent above the low they hit during the depths of the credit crunch – and have even climbed 14.1 per cent above their pre-recession peak.

The figures for prime property in central London are even stronger: prices climbed 0.8 per cent during the quarter, 5.5 per cent over the year, and are now 21.8 per cent higher than the record heights reached before the slump.

But Savills boss Lucian Cook said the figures were disappointing. “Despite some high profile sales, heightened uncertainty in the Eurozone and a cautious response to changes in the tax regime have caused the heat to come out of the market,” Cook said, “Albeit without leading to price falls.”

“Detailed analysis of the index suggests that it is increasingly the best in class of prime London homes that are underpinning price growth,” Cook added.

He pointed to data that showed how the top 10 per cent of properties were growing very rapidly – at around three per cent in the quarter – but also revealed stagnation and even decline lower down in the market.

And wealthy Chelsea is the only area seeing yearly double digit price growth – with similarly well-heeled Knightsbridge and Belgravia just behind. The report puts their success down to their familiarity for the international super-wealthy and highly mobile elite.

Right at the very top of the market is 45-bedroom Rutland Gate Mansion, which two weeks ago went on sale for £300m – if a buyer matches this reported asking price, the sale would smash the UK record, which currently stands at £140m.