Prime property prices in London rise 3.4% in last quarter: Coutts
According to figures from the latest Coutts’ London Prime Property Index, the price of prime property in London increased by 3.4% in the last quarter.
While prime property prices have increased, the latest data shows they are 0.6% lower compared to this time last year and 6.2% below the height of the market in 2014.
Though the market has struggled to recapture its peak in 2014, there has been some price growth since the pandemic, and across prime London, prices are now just 6.2% below their peak.
Katherine O’Shea, Director of the Coutts Real Estate Investment Team, says: “Buyers are still negotiating big discounts, but that is starting to come down, suggesting there is more competition coming into the market.
“The average discount buyers are negotiating across prime London is now 7.7%, down from 9.2% at the end of last year. In the latest quarter, 40.4% of sales saw their published asking price reduced and 75% sold at a discount.”
Super prime property performance
Coutts says the super prime market has continued to perform well with “transaction volumes across London for properties worth £10m and above up 30% compared to last year, with Kensington, Notting Hill and Holland Park dominating in super prime activity – 47% of all super prime sales were in this area.
Property is selling faster in St John’s Wood, Regent’s Park & Primrose Hill compared to any other area covered in our index (132 days on average vs 166 days across prime London). Prices here are now just 0.1% below peak levels.
London is still globally attractive
Though there might have been uncertainty around a change in government in the UK and what it could mean for the property market, the reality is a Labour landslide was expected and priced in by markets.
Globally, though, Coutts says there are still variables of political uncertainty elsewhere, and they expect the focus will now shift almost entirely to the US presidential election later this year. Indeed, the uncertainty in the US could even bolster London’s appeal and ‘safe-haven’ status.
The top end of the market continues to be driven by international buyers, and Coutts says it is monitoring how any changes to the UK non-dom status could affect the prime property sector.
£1 million+ mortgages below 4%
A host of banks and building societies offer a range of £1 million+ mortgages to wealthier clients purchasing properties or remortgaging.
Nationwide for Intermediaries launched a sub-4% five-year fix for mortgages between £300,000 and £5 million. NatWest for Intermediaries has also lowered its rates and its lowest mortgage is priced just over 4%.
Barclays for Intermediaries has a selection of competitively priced two and five-year fixes. Its two-year rate is below 4.40%.
Are you considering your next move? Let Trinity Financial help. Call us on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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