Penthouses rise up the desirability stakes for buyers

Penthouses have become among the most sought-after homes in the capital, and it is now impossible to buy one for under £1m anywhere in London, property consultancy firm CBRE has said.

The firm said the value of penthouses currently being sold in London now exceeds £1bn.

Its report, ‘Penthouse London: paying a premium for perfection’, is CBRE’s first in-depth study of the London penthouse market, which has soared in value since the prime residential market began to recover from the global property crash.

The research also gives a definitive guide to ‘What makes a penthouse?’ and helps to differentiate between true penthouses and merely a top-floor flat: a penthouse covers the entire top floor, and in some cases the top two or three floors, apparently.

Penthouses are being developed across London and vary dramatically in price, but are usually 60% more expensive than other apartments in the same development.

While you may find penthouses priced between £1.5m and £3m (bargains) in Islington and Camden, in prime Central London the starting point for penthouses is closer to £4m.

In the most desirable boroughs prices average £13m and can easily top £4,000 per square foot.

On average, penthouses account for 20% of the gross development value of the project involved – so they are important to developers.

Penthouse sales are not limited to international investors: while many transactions are shrouded in secrecy, sales to UK buyers account for almost half of those achieved by CBRE.

Jennet Siebrits, head of residential research at CBRE, said: “No one should under-estimate the importance of penthouse sales to the London property market. Sales of more than £1bn will also provide more than £70m of stamp duty.”

The research says penthouses have a range of desirable features, including a private entrance or lift, a library or office space, and additional suites for guests or staff. Often buyers demand security measures such as bullet-proof windows, a panic room and retina recognition systems.

All buyers apparently want outdoor space, floor-to-ceiling wrap-round windows, the absolute latest in technology, a luxury specification that is notably better than the rest of the scheme, and spectacular views.

Penthouses now on sale in London are at schemes including Neo Bankside, Fitzroy Place, Grosvenor Crescent Apartments, and Roman House in the City of London.