Spring is traditionally the time when the London market stretches itself and wakes up properly. 2012 is no exception, as can be seen in our latest market intelligence report.
Notting Hill and Holland Park prices are now, on average, 13.5% higher than the previous 2007 peak (Lonres).
But it’s interesting to see how this breaks down within the area. The star performers are houses within W14 where prices have risen on average by 19.9% in the last 12 months, compared with houses in W8 increasing in value by an average of 11.4% over the same period, and houses within the W11 postcode rising in value by 10.4%.
By contrast, houses within the W10 postcode have risen on average by 3.2% in the last 12 months.
Flats have performed less well with prices in W14 rising 8.3% over the same period; and those in W11 falling by just under 2.4%. In W10 however, flats have risen in value slightly more than houses showing a 3.2% increase in value, compared with 2.8% for houses.
These figures are testament to the strong levels of demand for prime property in this area. Good houses in prime locations can, if marketed properly, sell quickly and at record prices. We recently sold a house in Highlever Road, W10 that went under offer within a week and above the guide price and in Chepstow Place we sold an unmodernised house prior to marketing and achieved a new £psf record for un-modernised property in Notting Hill.
Despite flats generally showing less in the way of price increases than houses in the Notting Hill area, the best are selling strongly. We recently sold above the guide price a one bedroom flat in Talbot Road, W2 priced at £1 million. We had several offers that the vendor was willing to accept, but we felt that more could be achieved and the vendor agreed to hold out. The apartment sold within 6 weeks and achieved a record price for the immediate area of £1,250 £psf.
But valuing is not child’s play; it’s a surgical process to establish the correct price in a market where overvaluing can leave a property overlooked on the sidelines of a fast paced game. We have been ambitious but not ridiculous, and every house we’ve sold this year has been at the guide price or above.
The latest budget revealed some costly changes for those buying at the top end of the UK housing market which will have the greatest impact on London where 73% of homes over £2m were sold last year. However, the case for investment in the Capital remains compelling and we have seen no let-up in activity since March 21st, and anticipate that the added cost will be absorbed with little drama.
You can see the full report online here. But if you’d like a hard copy, please feel free to give us a call (020 7221 1117) or drop us a line (firstname.lastname@example.org). Or even better, come into the office to pick one up – we’d love to see you.