Over the past 12 months, price growth in prime central London has totalled 6.9% and the strongest price growth has been seen in the sub £1 million price bracket where prices are up by 6.6%so far this year, the data also shows.
The biggest price rises during June were seen in Marylebone with price growth of 2.8% and the South Bank with price growth of 1.4%.
Average property prices also increased in Notting Hill, by 0.8% and in South Kensington and Islington, by 0.6%. In Belgravia and Knightsbridge prices were static, while in Mayfair the average cost of a prime home fell by 0.2% over the course of the month.
It means that prime property prices in central London are almost 60% higher than the market trough in 2009. However, price growth is varied across price bands.
Liam Bailey, global head of residential research at Knight Frank said that a more detailed examination of the data shows that there are wide variations in terms of price performance depending on the value of a property.
While prices have risen across all price brackets in 2013, at the lower end of the market sub annual price growth for sub £1 million properties stands at 12.1%, well above the average of 6.9% for prime central London as a whole.
In the £1 million to £2.5 million price bracket properties have increased in value by 5.4% in 2013 and by 8.5% over the last 12 months. Price growth for properties in the higher price brackets has been more muted in comparison. In the £10 million plus sector homes have risen 1.5% over the year to date and are 4.5% higher annually, although activity levels remain healthy.
Bailey explained that the higher stamp duty charge for £2 million plus properties, introduced at last year’s Budget, remains a key driver behind stronger growth from the lower price brackets. ‘The health of this sector is also beginning to encourage vendors to bring properties onto the market. Stock levels for sub £2 million homes in prime central London are 25% higher year on year,’ he said.
‘Over the first half of 2013, prices for homes in all of the markets tracked by our index have risen. However, unsurprisingly, given the variations in performance of the different price brackets, there have also been significant differences between areas,’ Bailey pointed out.
The data shows that in the City Fringe, where the average property has a value under £1 million, prices are 7.8% higher over the year to date. In Knightsbridge, where the average price for a property is above £2 million, price growth has been more muted.
