Multi-million-pound property in central London, so-called super-prime property, is hard to come by at the moment, according to the capital’s leading estate agencies.
Recent reports say that homes costing between £50million and £200million are now extremely rare – despite the world’s super-rich ready to part with huge sums of cash for a luxury home.
Meanwhile, property consultancy Savills reports this month that while prime central London house prices continue to show steady year-on-year growth, the predominantly domestic markets of southwest London have recorded double digit rises, thanks to a wave of equity pushes moving outwards from the core central zone.
Values in prime central London rose by 1.9 per cent in the three months to the end of September, said Savills, taking annual growth to a relatively modest 5.6 per cent, but continues a record-breaking period of steady, single digit annual price growth.
There are now clear signs of outer prime London playing catch-up, with average prices across the wider markets of prime London rising 3.3 per cent in the quarter and 9.2 per cent year on year.
The standout performer is prime southwest London – a largely domestic market that stretches from Fulham to Wimbledon – where prices rose 4 per cent in the last quarter and 11.8 per cent year on year. These markets are now on average 28.1 per cent above their 2007 peak, just behind prime central London at 30.1 per cent.
Less accentuated but nonetheless robust price growth has also been seen in other locations that have historically lagged central London, including Islington and Wapping.
“The strong price growth in London’s prime markets is often attributed to the influx of overseas money and while that has been the case previously, the strongest price growth in the capital is now being driven by equity rich buyers who are resident in London full time,” says Lucian Cook, director of Savills residential research.
Analysis by Savills research shows that £22 out of every £100 of equity spent in the UK housing market over the past year was spent in London. This means that of the total £146billion of equity applied to buying housing in the UK, £33billion was spent in London.