The PrimeLocation index, which tracks the top 25% of the UK market by asking prices, shows that in July prices fell for the first time in five months and now stand at £480,285.
The average price of UK prime property is now 0.5% lower than it was in June, whilst asking prices across the market as a whole fell by only 0.1% over the same period.
The gap between the prime market and overall property market, which had been rising steadily, has now narrowed for two consecutive months, by £2,256 since May.However average asking prices for Prime properties remain £257,975 more than average asking prices across the UK.
It was a mixed month for Prime properties across the UK, with price rises in five regions and drops in six others. For the first time in the past 12 months, asking prices for Prime property fell in London, by 0.18%, though the greatest reduction was in Scotland, where Prime prices fell by 1.39%.
‘For the first time since February, Prime asking prices have fallen, albeit by a relatively small amount and from a record high. Despite this recent blip, some areas have performed incredibly well over the past few year. Prime properties in London are still 16.5% higher than a year ago, despite the recent drop,’ said Nigel Lewis of PrimeLocation.
Despite Prime prices falling overall in the capital city, properties in East London have seen a short term boost as sellers increase their asking prices for the Olympics. Prime asking prices in Hackney rose by 3.9% in July, more than any other area of London.
Tower Hamlets was also in the top three boroughs, with monthly gains of 1.4%. The average price of a Prime property in Hackney is £783,917 and in Tower Hamlets it is £716,702.
‘London’s prime market cooled in July, as sellers dropped their asking prices for the first time in a year. However, the Olympics appear to have provided the perfect opportunity for East London owners to try to close the price gap with those in West London whilst the world’s spotlight shines on East London,’ added Lewis.
