Super-prime deals still few and far between in London

Just nine £10m+ sales recorded across prime London during Q1, reports Turnbull Property

Top PCL buying agency Turnbull Property has flagged up a few key market stats worth keeping in your back pocket this Bank Holiday weekend.

Average prices per square foot across prime London were down by just 2% year-on-year in March, compared to July 2016 when they were 5.5% lower, while sales volumes hit their highest level in a year.

In the £3m-£10m range, the number of transactions in Q1 was down on a quarterly basis, but still well up on Q3 2016, just after the referendum. Average prices in this bracket are now just 0.3% below the levels seen a year ago, a sizeable improvement on the -8% difference recorded during Q2 2016.

The super-prime market is still at a very low ebb though; LonRes records show just nine £10m+ deals across prime London so far in 2017, the lowest quarterly sales figure for over a year.

Interestingly, despite news of overall SDLT receipts hitting a record high, calculations by Dataloft suggest the proportion of total taxation receipts from high value properties is falling. Only a third of estimated SDLT receipts across prime London in Q1 2017 were from properties sold for over £5m, down from 47% during the same period last year.

Turnbull’s take-home stats (March 2017)

  • £121.2 million

Stamp duty receipts Q1 2017 across prime London*, down 20% on 2016 (dataloft/LonRes), excluding corporate purchases, assumes 40% of property purchases subject to second property surcharge

  • £857,000

Average reduction in the price of a £3m+ property across prime London Q1 2017 (dataloft/LonRes)

  • 3.7%

Annual house price growth across London, the lowest level of annual growth since April 2012 (UK HPI)

  • 20%

Increase in +£3 million homes purchased outside of London (dataloft/Land Registry 2016 v 2015)

Read the full report here