Trend Spotter

The Notting Hill market exposed

Just out and fresh off the press, our latest market intelligence delving into all the property facts, figures, statistics and inside knowledge that we have to offer on this lovely part of the Capital including W14, W11, W10, W8 and W2. The pace of change in the buying demographic is breath-taking – some may be trying to take us out of Europe – but it seems that now you can’t take the Europe out of us.

It’s all here or read on for a few of the highlights:

Overseas buyers:

– Since the Budget, overseas buyers have dominated our market, with two-thirds of properties sold by Crayson since March 2012 bought by non-British buyers, compared with just one-third a year earlier.

Half of all residents in Kensington & Chelsea were born outside the UK. The motivations behind purchasing a home in London range from pure investment, buying for offspring, hedging against the instability of their own property markets, and taking advantage of currency variations. Prices in prime London increased by 30% over the past five years for domestic buyers using Sterling. However, in Euros, prices have only increased by 16%, and by just 4% for those purchasing with US Dollars.

Price increases:

– Prices per square foot in our area increased by 7.5% in 2012, with average price per square foot now exceeding £1,170

– Properties in Bayswater and Ladbroke Grove showed the highest price increase of 14.8% in our area

London continued to dramatically outperform the rest of the UK where values rose by just shy of 1% over the course of 2012. Of the top ten local authorities nationally, eight out of ten were London boroughs, led by Westminster and Kensington & Chelsea.

Transaction levels:

– Over the course of 2012, transaction levels across our market dropped by 7.8% compared with 2011.

– However, the investment market remained buoyant. The number of sales of Notting Hill flats priced between £1m and £2m rose by 12% year on year.

While transaction levels dropped in 2012 across the board, the last four months of the year saw sales activity 12% higher than for the same period in 2011; while for the first eight months of the year sales were down 17% on the same period in 2011.

In 2012 transaction levels rose for properties £750k – £1m, and properties over £5m saw a rise of 43% year on year. But they dropped for properties between £1m and £2m, and properties between £2m and £5m showed a fall in transactions of 23%, almost certainly as a result of the increase in stamp duty for homes over £2m, and the uncertainty over the possible implementation of a Mansion Tax.

Levels of stock

– Available stock levels have fallen by 11% in our area with 828 properties available in January 2013 compared with 932 in January 2012. Demand continues to dramatically outweigh supply.

– Kensington & Chelsea has seen the greatest fall of properties available – from 149 to 105, a fall of 29.5%

However, W11 has seen a small increase in the number of properties available for sale, from 197 in January 2012 to 202 in January 2013, an increase of 2.5%.

You can see our 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 (nick@crayson.com). Or even better, come into the office to pick one up – we’d love to see you.

A bientot, Nick