Contrary to reports that investment demand in Prime Central London (PCL) residential has dissipated, the just released Land Registry statistics for Q1 2014, analysed by London Central Portfolio, have shown that global appetite continues to increase. Sales volumes reached 6,237 over the year, the highest level since 2007, following two consecutive quarters of growth. Property prices also continue to rise but with no sign of a so called ‘bubble’, as long term average growth continues to average 9% per annum. The average price has now crossed the £1.5m mark reaching £1,552,400 whilst rolling annual price growth, which removes seasonality, was 10.48%.


Compared with last quarter, sales in the core sub £2m sector of the market have shrunk 28% and the number of transactions under £1m is now less than 60% of the market. “This reflects the fact that average prices are now well over £1m, so the lower end of the market is inevitably shrinking. It is also indicative of owners holding onto properties which are prime performers in the heartland of the Private Rented Sector. "It does not indicate a lack of appetite to buy at this level: in fact, last week a 1 bedroom property in Paddington was sold by a client of LCP after six buyers competed in sealed bids. It was snapped up at 10% above asking price – a clear indication that buying appetite exists, but that the best properties are few and far between”, Heaton explains......Read more here