Prime London asking prices bounce back

Hamptons International, premier international residential agents, has released its latest London ‘Heat Map’, tracking the key residential hot-spots and investment areas across London for the first half of 2009.

When comparing the first half of 2009 with the same period in 2008, the latest research reveals that areas with the most prominent asking price rises are in prime locations; SW3, SW10, SW7 and W8 - where asking prices are up between 5% and 9%.

With the number of new properties coming onto the market down 33% on last year coinciding with a significant uplift in demand; a house price bounce has taken place in these prime London regions.

Despite limited property supply affecting the whole of the UK, it is more acute in prime areas of London - with 22% of the London postcodes surveyed witnessing an increase in average asking prices year on year. At the opposite end of the spectrum, outlying areas have suffered the most with asking prices in SE22, SW18, SE21, W14 down between -18% and -16% on the previous year. Of the London postcodes surveyed, 78% have lower asking prices in early 2009.

Marc Goldberg, head of sales, Hamptons International, said, “The rise in prime London asking prices is attributable to a more acute imbalance between supply and demand; coupled with rising consumer confidence, illustrated by the growing number of applicants. We are also seeing growing demand for good quality property from international investors looking to capitalise on increasingly advantageous market conditions.”

With double the number and value of sales this year compared to the first half of 2008, some movement in the market is apparent. However with 9 buyers to every seller in June 2009 (compared with 5 buyers per seller in June 2008) the requirement for new stock is evident.

Goldberg continues, “Rising asking prices are a sign that the market is in recovery and if the stock shortage persists, this trend will impact all postcodes throughout London.”