Central London property price boom continues
Wednesday, 8 February 2012 3:45 PM
Central London continues to enjoy immunity from the difficulties across the property market according to quarterly Land Registry figures released today.
Prices rose by 12 per cent in the heart of the capital, whereas prices fell 1.25 per cent in England and Wales over the course of 2011.
The Royal Borough of Kensington & Chelsea broke the £1m average flat price barrier, with prices rising by £418 per day in 2011.
Naomi Heaton, chief executive of the London Central Portfolio, said: "The research published today indicates the continuing decoupling of prime London central from the rest of the UK.
"It supports the generally held view that prime property in London offers a safe haven investment in a volatile environment with considerable capital upside."
Flats in central London enjoyed high rises during the last quarter, increasing in value notably faster than houses.
The price of an average flat ended at £797,806 in the City of Westminster, and £1,014,497 in the Royal Borough of Kensington & Chelsea.
Sales were at their lowest levels across both boroughs, with 5,551 transactions over the course of the year, 40 per cent lower than in 1996.
House sales made up only a small percentage of these transactions with just 831 recorded house sales in 2011.
Heaton painted a positive picture of the market, despite the difficult sales environment.
She said: "The lack of stock coming onto the market, as existing owners recognise the value of their investment, combined with the lack of any significant new build potential, means there will be continued pressure on prices as buyers compete for the scarce resource."
The news is not good for those who are locked out of the London property market, with continued house price rises making the expense of living in the capital more and more difficult to bear.
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