Slow growth recorded in prime London locations
Property values in prime London areas rose by an average of just 1.1 per cent in the second quarter.Estate agent Savills, which published the data, says this brings prime London price growth into line with steadier levels of growth now being seen in the prime regional markets.Year to-date growth in prime London locations has now slowed to 4.9 per cent - a significant slowdown from 2013, when prices rose by an average of 11.8 per cent. The estate agent's figures reveal a levelling off of Sub markets that have been the top performers since the low of early 2009. During the first six months of the year prime central London growth slowed to just 2.5 per cent and values now appear to have now plateaued.Lower value core prime markets of Islington (prime north) and Canary Wharf and Wapping (prime east of City) are now witnessing the strongest growth.According to Savills, this trends reflects confidence amongst young financial sector employees and investor buyers targeting City-based renters.Quarterly growth of no more than one per cent has occurred in the most established core prime central locations such as Mayfair, Knightsbridge, Belgravia and Chelsea, where average values are in the region of £2,100 to £2,400 per square foot.In Marylebone, however, where prices average £1,600 per square foot, values rose 3.5 per cent in the quarter."Successive changes to stamp duty and the wider tax regime have left some prime London markets looking fully valued and sensitive to shifts in both overseas and domestic buyer sentiment," said Lucian Cook, Savills UK head of residential research. Mr Cook said the possibility of interest rate rises and more constrained mortgage lending are starting to have an impact on buyer sentiment and constraining prices even in equity-rich markets.In prime central London locations, homes worth over £10 million fell by 1.5 per cent in the second quarter of 2014, meaning the capital's highest value homes have shown zero growth over the past year.
--- Ends ---