The average value of three-bedroom properties in Prime London has risen by over £700 per day, following a 19% annual growth, according to estate agent Marsh & Parsons’ latest London Property Monitor.
This is equivalent to more than a quarter of a million pounds in the last year (£266,246) or £5,120 per week and means that three-bedroom property owners in Prime London are earning almost eight times the median salary for London, currently estimated to be £658 per week, in capital gains.
A large part of this increase was gained in the last three months, after a strong 6% quarterly rise increased the average value of three-bedroom properties by an extra £93,231. This follows three strong quarters of growth in the past year, contributing to a 19% annual growth – equivalent to £266,246 in a year.
Three-bedroom properties have risen in value at a faster rate than properties of other sizes in Prime London. The overall rate of growth in Prime London, reflecting all sizes of property combined, was 4.3% in the past quarter and 12.9% in the past year.
Peter Rollings, CEO of Marsh & Parsons, said: “These are extraordinary times for the Prime London property market. Smart buyers can earn more money from their house in a year than by going to work in a very well-paid job. With returns like these, it’s easy to see why people are queuing up to buy Prime London property.
“It’s always difficult to call the ‘top’ of the market. But while comparisons are being drawn with 2007, the current conditions are actually remarkably different. It’s difficult to see how prices can fall while demand for property remains so high.
“Compared to the same point last year, we have seen a 20% increase in demand and a 25% fall in the supply of property. Prime London is still a strong sellers’ market and jackpot prices are fast becoming the norm.”
