The Primelocation.com Prime Index for September documents that a 2.45% increase in Prime London property prices, the highest rise in eighteen months, coincided with a surge in prices in Central London, which rose for the third consecutive month by 2.03%.
Westminster & Pimlico, Mayfair and Marylebone & Fitzrovia were the best performing areas in the central zone, recording price increases of 4.8%, 3.8% and 3.4% respectively, as a result of heightened demand from businessmen and international buyers looking for prestigious homes without the commute.
Andrew Smith, Head of Research at Primelocation.com, comments:
“September has been a positive month for London’s Prime property market, with Central London price growth indicative of a more general, if cautious, upswing in consumer sentiment. The readjustment in prices has brought Zone One property back into favour with top-tier businessmen, who prefer to minimise their commute, sending demand shooting up as supply continues to fall.
“Top-end buyers are likely to have been facilitated by the resurgence of the FTSE 100, which rose above 5,000 points last month - its highest level since the collapse of Lehman Brothers in September 2008. As well as acting to increase confidence, this upturn will have increased investors' collateral, allowing them to borrow against their portfolio of shares, which is a common method used by high-end buyers to raise finance.
“While we have a way to go before stability is restored, certain economic factors are beginning to improve and buyers are prepared to take the long term view, reverting to ‘business as usual’. Confidence has been further bolstered by Party Conference season, with voters looking forward to the possibility of a new Government in 2010.
“We also saw a host of wealthy international buyers show a renewed interest in central London property in September. Buyers from Singapore, the UAE and Hong Kong, who had been watching the market made a move to take advantage of lower prices and a weaker pound.”
