'Modest' increase in prime London prices

Wednesday, 17, Jun 2009 03:40

Asking prices in prime London areas saw a modest increase in May according to research out today.

The average asking price was up 0.27 per cent, equating to £3,591 onto the value of a home in prime London.

The research from Primelocation.com discovered sales stock in prime London had fallen slightly, and year-on-year sales prices in London have seen the second largest decrease, with prices now 2.48 per cent lower than May 2008.

Andrew Smith, Primelocation.com's head of research, said: "This is the fifth such rise in the past six months and provides further evidence that the year-long trend of rapidly falling prices has stabilised.

"There have been reports of gazumping and sealed bids as lower prices, the weak pound and rising yields attract buyers and investors back into the market. One agent (Cluttons) has even suggested that sellers now have the upper hand in some prime areas of central London.

"Going forward, whilst the general economic situation remains tough, we expect that additional activity in the prime market will be stimulated as landlords return their prime rental properties to the sales market in expectation of interest from cash-rich investors and genuine buyers with finance in place."

In the rental market prime London lettings stock continued to increase and is now 115 per cent greater than this time last year. Prices in rental values fell for the fourteenth successive month and are down £8.51 since last April, according to Primelocation.com.