In Notting Hill, Holland Park and Kensington the total value of homes sold exceeded £1.8 billion, £662 million more than the total value in 2012 prices per square foot have increased by 9.4% over the last 12 months and over the past five years by 34%.
Despite the introduction of a 7% stamp duty rate for homes over £2 million in 2012, it was this sector which saw the highest growth in transactions in 2013, up 77% year on year. The Notting Hill market saw a rise of 52% in transactions on 2012.
In 2013, homes sold in Kensington achieved an average of £1,658 per square foot. The average for property sold in Notting Hill and Holland Park was £1,513 per square foot.
The report also shows that some 45% of Kensington properties sold in 2012 achieved over £2 million, compared with 25% five years ago.
Homes in Kensington which do reach the market are selling quickly. Last year Crayson sold an unmodernised house on Scarsdale Villas achieving in excess of the asking price at almost £2,000 per square foot. Average values per square foot have risen by 173% since 2003 in Kensington.
‘Since January demand from new applicants for homes in our area has continued showing little sign of the market slowing. Whilst a resurgence in the housing market nationally has taken some attention away from London, we continue to see strong growth in both prices and activity,’ said Nick Crayson.
‘The consensus forecast for growth in UK house prices in 2014 is 7%, and the prime London market is expected to see increases of 5% by the end of the year. But forecasting is becoming increasingly difficult as global factors determine the rate of house price growth,’ he pointed out.
Bella Tellwright of Crayson explained that with high demand for properties in W8, yet relatively low levels of new supply, prices have increased considerably over the past decade. Average prices per square foot have risen by 173% since 2003 and properties sold in 2013 achieved an average of £1,545 per square foot.
In 2013 the total value of sales exceeded £896 million, 46% higher than in 2012. The upper end of the market was especially busy and 45% of properties sold achieved over £2 million.
‘Restricted supply is of course a major factor in the robust growth in value of prime London property, and Kensington is no exception. Opportunities for residential development remain scarce. Over the past decade there have been just 274 homes built for private sale. Looking ahead there are currently 439 private units that are either under construction, with permission, or in the planning pipeline,’ said Tellwright.
‘But despite limited supply and consistent demand, property doesn't sell itself at these values. Last year we valued an unmodernised property in Scarsdale Villas at least £500,000 higher than that quoted by three competing agents. We had the confidence in the property, and the market, to believe that this price was viable.
‘We took time to market the property thoroughly, and achieved £100,000 over the guide price, just under £2,000 per square foot for an unmodernised property, and a record price in the street. Our client wanted maximum price, and understood that this would take time. Top values can't be achieved overnight,’ she explained.
