propertytalk Live! - Prime Central London property market sees increased sale and rental prices

propertytalk Live! - Prime Central London property market sees increased sale and rental prices

Prime Central London estate agency, W A Ellis, saw a very active market in the run up to the Royal Wedding last month, and it expects levels of activity and interest to be sustained.

It also predicts that moving forward, low levels of stock coming on to the sales market will become the norm. On the lettings market, W A Ellis’ average rent has increased by 20% since last year, due to high levels of demand.

Simon Godson, a partner at W A Ellis, comments: “It has been widely reported that there is a shortage of new properties coming on to the market, and this is resulting in increased demand; I would suggest that the current stock levels will become more typical in the future, rather than there being a short-term lack of supply.

“Of course, as demand increases, so do prices. The last five deals that we have agreed were all above the guide price, with an average excess of almost £90,000 being achieved. All five deals had multiple interested parties bidding against each other. Lonres, the London property transactions archive, reported that the average sale price across London has risen by 5.8% since the beginning of the year.

“The Royal Wedding has meant that London has been in the spotlight. This, in turn, sparked a lot of interest and I expect to receive enquiries on the back of it for some time to come, but aside from this and the low levels of property stock, there are a number of other factors which are contributing to the heightened demand for properties in Prime Central London. We continue to experience high levels of interest from international buyers, particularly those from countries in the Middle East which are still suffering from political unrest. The ongoing relative weakness of Sterling has also meant that London is an attractive location for overseas buyers who are looking to invest.