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Prices grow in prime London

Prices grow in prime London 1024 576 NGI Residential Mortgages

Property prices in prime areas of London went up by 3.3 per cent overall between Q1 and Q2 of 2019, according to data collected by LonRes.

“Prime central” property prices rose by 4.9 per cent and property prices in “prime fringe” increased by 1.4 per cent on a quarterly basis.

However, the overall figure was brought down by the 0.7 per cent fall in property prices in “prime London”.

On an annual basis, property prices in all prime areas of London dropped by 5.3 per cent overall between Q2 2018 and Q2 2019. Prime central saw a fall of 5.9 per cent, prime London dropped by 5.1 per cent and prime fringe by 4.9 per cent, year-on-year.

Available stock for sale in overall prime areas of London fell by 11.6 per cent on a yearly basis.

Specifically, prime central recorded a 13.2 per cent decline, prime London fell by 11 per cent and prime fringe by 9.6 per cent, according to LonRes.

Despite this decline, supply in rental stock increased overall year-on-year by 6 per cent overall in prime areas. The data shows that prime central increased by 0.9 per cent, prime London by 3.3 per cent and prime fringe by 12.7 per cent.

The change in achieved rental values remained broadly similar between Q1 and Q2, as well as annually, representing a 0.6 per cent and 0.9 per cent rise, respectively.

Between Q1 and Q2 prime central increased by 2.7 per cent in achieved rental value and prime fringe by 2.2 per cent. This was offset by a 1 per cent decline in prime London.

Annually, prime central rose 2.3 per cent and prime fringe by 1.4 per cent, which was again offset by a 0.9 per cent decline in prime London.

LonRes head of research Marcus Dixon says: “This year, with a Tory leadership contest in full swing and Brexit negotiations stalled, many would-be movers could have postponed their decision to transact.

“In the lettings sector, agents reported an increase in demand this quarter. This, coupled with an ongoing lack of stock, meant rents rose again this quarter – up 2.3 per cent on the same three months last year.

“But, with renewal rates remaining high, less stock came back to the rental market, resulting in another fall in the number of new lets this quarter.”

* Content Source – Mortgage Strategy.