21 September 2009
South West and West London are set to lead a recovery in the capital's Prime property market, as demand for family homes in the popular suburbs drives up prices, according to Primelocation.com.
The Primelocation.com Prime Index recorded a 4.83% increase in Prime property prices in West and South West London in August, compared to a 1.42% rise across the capital as a whole. The growth was partly fuelled by a further reduction in stock levels in the region, which fell by 2.84%, widening the gap between supply and demand.
Andrew Smith, Head of Research for Primelocation.com, said:
“Traditionally popular with families, the West and South West suburbs of London have weathered the downturn well. Sustained demand for prime property in areas such as Chiswick and Wimbledon, which offer attractive and secure living environments in leafy 'village' locations, as well as excellent schools and amenities, has prevented prices from falling as far as in other regions.
“Buyers moving into the area are typically planning to settle there and make it their home for the longer term and, as such, the cycle of properties coming back onto the market is slower, maintaining supply at a lower level than demand.
“The heightened activity levels in South West and West London are set to spearhead a recovery in the Prime London property market, as the increasing prices encourage more vendors who may have been delaying a sale to put their properties onto the market and the outward ripple effect begins to take hold. Consumer confidence is gradually returning and we expect activity to continue to grow, underpinning stability throughout the Prime London market.”
Andrew Smith adds: “Prime London lettings stock decreased for the first time since March 2008, coinciding with a 0.61% increase in weekly rental values – the first positive growth in 17 months. However, although we expect many landlords to re-consider a return to the sales market this autumn, it is currently too early to predict whether August's changes will form the start of a new trend of rising rents.”
