High-end property prices in central London are starting to pick up
Prices for central London’s most expensive properties have risen at their fastest levels in almost three years, amid signs that confidence is starting to return to the capital’s high-end residential market.
Central London’s prime house prices rose 1.2 per cent over the second quarter of the year, marking the highest annualised growth since autumn 2015.
The latest data from LonRes suggests that wealthy buyers could finally be showing a reinvigorated appetite for multi-million pound houses, after several years of a slump that many in the industry believe has been driven by political uncertainty and stamp duty.
However, demand has picked up in the wake of lower prices, with LonRes suggesting that “price reductions have translated into sales”.
Such statistics come a week after property developer Christian Candy sold his former head office – which has been converted into an ultra-luxury five-bedroom home – in Knightsbridge for £63m.
“Confidence is coming back in central London. Wealthy buyers are getting fed up with waiting for the most opportune time, and people are now looking for long-term holds as they want to get on with their lives” according to Marcus Dixon, head of research at LonRes.
Dixon added: “Even with fears around Brexit there are a lot of overseas investors who still have very strong ties to London. A lot of the world’s wealthy educate their children in the UK, and them buying a property for themselves to use or for their child to use has not gone away”.
Property expert Henry Pryor told City A.M.: “At the top end – with houses priced between £20m and £50m, there is much less concern about future movements in the market. People at that level are much more concerned about their own mortality than what might happen to house prices in the next ten years.”