Average prices in prime central London rose again last month, according to Knight Frank, as activity “remained robust”. The firm recorded a rise of 0.9% in March, although the annual rate of growth slowed from 8.4% in February to 8.1% in April.
Despite (temporarily) losing it’s place on the Monopoly board, Mayfair had a healthy few weeks, enjoying a 1.1% increase, but the relatively new prime areas of City Fringe (1.8%) and Islington (1.5%) were the month’s big winners overall.
Going deeper into the figures, the impact of new legislation and higher 7% stamp duty charges looks to be evidenced by sprightly performance across the lower price ranges – homes valued at between £1m and £2.5m have already apparently risen by 3.4% so far this year.
Average UK rents were seen to continue their downward decline in February, falling by 0.1% during the month (although they remain 3.3% higher than in February last year).
In prime central London, rents also declined by 0.1%, with the biggest falls in Mayfair (-1.2%) and Notting Hill (-0.9%). Rents fell by 0.3% between January and March and are down 3.1% year-on-year. The biggest drop in rents was seen in the £500 to £1,500 range – a stat that Knight Frank is putting down to continued uncertainty over City jobs. On a more positive note, activity levels remain high – the number of new applicants in the first quarter of this year was a good 10% higher than the same period last year.