Property growth in Prime Central London is starting to outpace Outer suburban areas, according to estate agent Marsh & Parsons’ latest London Property Monitor for the first quarter of 2015.
Historically, property prices in the most affluent Prime Central areas of London had been accelerating away from values in the rest of the capital, due to consistently higher demand from overseas and domestic buyers keen to live in the most famous London locations. However, over the past two years, areas such as Brook Green and Balham have experienced some of the steepest price rises across the capital.
However, Marsh & Parsons says this looks to have been a short-term phenomenon, as we enter a new phase in the cycle. While Outer Prime house prices have fallen 1.8% in the past three months, there has been a resurgence in price growth in prestigious Prime Central London – with values up 0.3% throughout the last quarter.
This is the first time in over a year that price rises in exclusive central areas like Pimlico and Kensington have overtaken the growth in more affordable areas like Balham, and this is a trend that Marsh & Parsons expects to continue throughout this year.
As a result of this turnaround, the price premium paid for Prime London property has risen for the first time in fifteen months, and is now back in line with last year. Buyers can currently expect to pay a 34% premium to live in central locations.
Peter Rollings, CEO of Marsh & Parsons, said: “The Outer Prime dark horses of Balham and Brook Green have been putting on the most astonishing performance recently, with an eye-catching spurt of growth in 2014. But in the long-run, the traditional property stalwarts of Kensington, Chelsea and Holland Park are proving they have the stamina to withstand a wider market slowdown.
“While the wind slackens in the sails of other parts of the London housing market, the enduring appeal of the most desirable Prime Central postcodes has ensured growth ticks on. We believe this trend is set to continue in the next twelve months, with Prime Central areas outperforming Outer Prime areas for the first time in more than two years.”