According to established Estate Agents Savills, the cost of purchasing a luxury london home has risen by 4% in the last 3 months. Savills say the price rise is due to more buyers fighting over less available luxury property.
Camilla Dell who is managing partner of luxury estate agents Black Brick Property Solutions has said “There isn’t enough property on the market in prime areas and priced attractively to satisfy demand.”
The amount of luxury homes for sale has dropped by a whopping 25% compared with the last 5 years according to Savills, so it’s no surprise there’s a bidding war on for those properties that do make it on to the market.
Not only are there 25% fewer luxury homes for sale in London, their prices have also dropped by 18% from September 2007. Add to that the fact that the British pound fell by 20% against the Euro and the Dollar and it becomes easy to see how this 4% price rise has come about.
However Savills also admitted that on an annual basis the cost of buying a luxury pad in London’s most expensive neighbourhoods had fallen by 4.9%.
Belgravia, Kensington and Chelsea have bucked this annual trend though. Property prices in these areas have increased meaning that these boroughs in the west of London have seen the biggest rise in luxury property prices.
Liam Bailey who’s head of residential research at Knight Frank pointed out “U.K. buyers have been especially keen to take advantage of low mortgage-rate costs. The real test in the market will come when interest rates rise.”
For more indepth analysis of the London luxury property market visit Bloomberg.com by clicking here.
