Report tracks growth in London's million pound properties

Affordability has always been a major issue for those looking to buy Properties in London, and now a new survey has shown that the problem may be getting even worse.

At least this is the case in prime areas of the capital where, according to Marsh & Parsons, some 43 per cent of homes are now worth £1 million or more.

This is an increase compared to last year, when 34.6 per cent of residential properties fell into this price bracket, and is down to an 11.1 per cent rise in average prices in the last quarter.

But, as the report points out, London's most expensive homes are no longer just confined to prime areas in the city centre, such as Kensington and Chelsea.

Indeed, last year, some 57.1 per cent of £1 million properties were located in traditionally high value areas such as these, but this has how fallen to 52.7 per cent.

Areas to the south and west of the city's central hotspots are now seeing strong price growth, so it may not be long before the problem of affordability pushes into other locations.

Peter Rollings, chief executive of Marsh & Parsons, cited Balham, Clapham and Brook Green as parts of the capital where more and more £1 million homes are coming onto the market.

Lettings in Wandsworth, Lambeth and Hammersmith and Fulham may therefore receive a boost, as fewer people are able to buy.

"Properties no longer have to be palatial to be worth £1 million," said Mr Rollings. "If they are located in a popular prime area, there's a good chance they'll be worth a seven figure sum."

The report also shows that the proportion of £2 million properties in prime London increased in the last year, from 14.3 per cent to 18.5 per cent.

Posted by Andy Britten

Published 30th October, 2012

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