Prime Central London’s residential values have risen 4.3 per cent over the past 12 months and now average £2.3m per property according to Cluttons - but price growth is forecast to slow slightly next year.
By the end of 2015 PCL values will have risen 6.0 per cent says the agency, with the largest gains so far seen in Rotherhithe/Surrey Quays, Mayfair and Kensington.
Cluttons says it is still a vendor’s market with offers made within two per cent of asking prices or better, with properties in some areas - particularly Islington and Clapham - achieving sales in excess of the asking prices.
“Capital value growth is still strong within PCL but has continuously slowed since the height of Q1 2014, which saw a 17 per cent year-on-year growth. We anticipate values to grow more steadily thanks to a number of legislative changes such as the Bank of England’s strict lending criteria, stamp duty changes, additional tax on second homes and new taxes for international investors who were previously exempt from capital gains tax” says James Hyman, Cluttons head of residential agency.
“There is still strong interest in PCL but buyers are taking longer to decide on a purchase, especially for homes worth in excess of £3m. Buyers will now only commit to purchasing if they are 100 per cent certain the property meets all their requirements, mainly due to the significant jump in transaction costs.”
Cluttons defines PCL as properties priced £500,000 to £5m in South Kensington, Chelsea, Belgravia, Knightsbridge, Pimlico, Westminster, Hyde Park, Notting Hill Gate, Marylebone, Bayswater, Kensington, Mayfair Holland Park, St John’s Wood, Regent’s Park, Hampstead, Primrose Hill, Belsize Park, Maida Vale, Highbury & Islington, Shad Thames, Borough, South Bank, Surrey Quays, Wapping, Limehouse and the Isle of Dogs.