Lack of stock pushes prices up in prime central London

Permalink: Lack of stock pushes prices up in prime central London
by Kay Murchie

The Knight Frank Prime Central London Residential Index has revealed that the average asking price of a prime central London property was £1,333,129 in September - up 2.45% compared with August and on an annual basis, rose 8.13%.

According to Liam Bailey, head of residential research at Knight Frank: “The central London housing market has experienced an extraordinary period in recent weeks.

A lack of properties on the market and a weak pound has resulted in an influx of foreign buyers pushing up prices.

The research found that prime central London sales stock levels fell for the fifth consecutive month in September.

Commenting on the research, Andrew Smith, head of research for Primelocation comments: “The central London prime property market has always been a case apart, but this has never been more clear than in the current climate.

“Many wealthy buyers see today’s market as a unique opportunity to move into prime central London, believing that the worst of the downturn has passed, and are snapping up desirable homes at the readjusted prices before they climb too far back up again“, adds Mr Smith.

Mr Smith explains that the lack of stock has resulted in a sellers’ market and is pushing up prices in the prime central London market.

He believes the trend is “likely to continue into the first months of 2010, as bonus payouts in the City serve to push up demand, while stock remains low over the Christmas period as vendors put off selling until the New Year.”