The Winter 2011 report from Cluttons shows that central South West and central North West London have witnessed the highest growth in the capital recording average price rises of 2.5% and 1.5% respectively.
However, while supply levels across prime central London are significantly down, leading to a drop in registrations, anecdotal evidence suggests that real demand levels are significantly higher as potential buyers only rush to register once they see a suitable property come to market.
‘The incentive to buy in central London remains strong with homes that come to the market in prime areas generating immediate interest and usually selling for well above listed values as long as they are correctly priced in the first instance,’ said James Hyman, partner for residential sales at
However, loan to value ratios and stamp duty thresholds remain a critical deciding factor for mortgage borrowers from the lower end of the market at around £500,000 up to the £2 million price brackets,’ he explained.
‘December is proving to be strong month with buyers willing to tie up deals by the end of this year in anticipation of further price growth in prime central London in the first quarter of 2012,’ he added.
Cluttons’ London View report also showed a contraction in prime central London rental value of 0.4% for the first time since the fourth quarter of 2009. Tenants are now more price sensitive and landlords are showing greater flexibility in rent negotiations, preferring to reduce the possibility of void periods against rental uplifts, it said.
