House prices rise in prime London locations

Published 11th Feb 2009

Asking prices for properties in London's best-heeled areas increased by an average of 1.3% (£16,106) in January, according to Primelocation.com – the second index to report a rise in house prices last month.

The survey, which focuses on the most expensive neighbourhoods in London, showed prices had increased to an average of £1.3m over the month, with the biggest increase in west and south-west London where asking prices rose by 2.29% or £21,418. The market was particularly buoyant in Hammersmith and Chiswick where sellers increased prices by 14.3% month-on-month.

Primelocation.com's head of research, Andrew Smith, said: "Last month we noted that the recent upturn in asking prices in prime areas after six months of falling values provided tentative evidence that the market was stabilising. This third month of rising prices adds further weight to that conclusion."

Last week, Halifax reported a 1.9% increase in house prices nationwide during January, while agents across the country said they had enjoyed a big increase in buyer inquiries.

The Royal Institute of Chartered Surveyors said yesterday that interest in the market was continuing to pick up, with 16% more surveyors reporting a rise rather than a fall in new buyer enquiries, with the strongest interest in Wales.

Although the average number of transactions per agency over the past three months is 9.9 – the lowest since the survey began in 1978 – more surveyors, particularly in London and the south of England, are optimistic sales will pick up in the next few months.

David Smith of Dreweatt Neate, an agency in Hampshire, Berkshire and Wiltshire, said: "Our activity rate was up 40% on this time last year. Buyers are realising that there are some good opportunities out there."

London estate agency Kinleigh Folkard & Hayward reported buyer registrations had reached their highest level since last spring, with more than 35% of new registrations made by first-time buyers.

It said Highgate performed particularly strongly with a 100% increase in activity and one property sold every day in the first two weeks of the year.

Agents have also reported considerable interest from overseas buyers in the central London market in the past three months, attracted by lower prices and a weak pound. Some agents were even claiming that buyers were entering into bidding wars over properties and there were even cases of gazumping.

Source: ' Guardian '

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