Data from Countrywide Group shows the potential volatility that exists in the much-discussed Prime Central London housing market, simply because of its small size.
PCL grabs many headlines in the industry and mainstream media, not least because of the high fees possible through the sales of multi-million pound properties.
However, Countrywide’s research - revealed to development magazine Estates Gazette - shows that only around 5,500 homes including 500 new-builds were sold in Prime Central London in the the past year.
“By comparison the mid-market across Greater London - priced £500,000 to £1m - had 25,000 sales including 2,500 new homes, which is 28 per cent of the UK market in both instances” says Johnny Morris, head of residential research at Countrywide.
“PCL is now increasingly volatile” he tells EG. “It is vulnerable to currency fluctuations, international political concerns and the risk of over-supply with massive schemes like Nine Elms [ultimately delivering 18,000 homes] and Earls Court [7,583 homes] all on stream.”
He says this is why some high-end developers who previously centred their London schemes on prime areas were instead considering elsewhere.