Prime central London prices jump 7.2% in the second quarter

12th August 2013

A central London property agency is warning that house price increases are likely to bring many more properties into the higher rate of stamp duty which it describes as a looming crisis. The London Central Portfolio says that the price of all property in England and Wales has grown 1.3% this quarter to reach an average of £242,415.

It says average prices are edging ever closer to the threshold at £250,000 where stamp duty on sales jumps from 1% to 3% and a huge tax increase from £2,500 to £7,500. In fact, for flats, which represent 18% of the total market, the average price breached the threshold this quarter to stand at £250,101.

Examining the Land Registry figures it says that transactions in England and Wales have seen a sharp increase of 26.6% since the first quarter. It argues that this is in part due to increasing economic confidence with more availability of credit, stable interest rates, and Chancellor George Osborne’s flagship help-to-buy scheme. However, it says the big increase is more likely to be due to seasonality as transactions dropped by 21.23% in the previous quarter and over the year, transactions have only witnessed growth of 1.16%.

As expected, the market continues to storm ahead in Prime Central London. Average prices grew 7.2% this quarter to reach£1,472,181. Transactions rose 11.64 % but like England and Wales, the annual increase is relatively low at 2.22%.

The PCL ‘houses’ sector, notoriously volatile due to its tiny size and huge price diversity, put in an exceptionally strong performance. Two hundred and thirty houses were sold, a 33% increase on last quarter. The ‘top five most expensive sales’ in Q2 2013 were all houses located in PCL bringing the average price to a new high of £3,136,615.

 

Naomi Heaton, CEO of LCP says: “Headline average prices in PCL are becoming increasingly distorted by increasing numbers of ‘super prime’ transactions. These top-end deals do tend to mask real average prices. In truth, 63% of all sales this quarter took place under £1m.

Nevertheless, PCL is a tiny area of undeniably exclusive properties which represent less than 1% of all transactions. The stamp duty it generated last year was in the region of £400 million compared with £1.6 billion in England and Wales: in other words 25% of the Exchequers SDLT tax take. In the last quarter, the average tax take at £73,609 per property was 30 times higher than the £2,424 achieved in England and Wales”.

 

The table below details the top five most expensive sales, the most expensive flat sold, the most expensive sale outside of the M25 and the least expensive property sold this quarter.

 

Top Five Most Expensive Sales

Most Expensive Flat

£25,000,000.00

19 Wilton Crescent, City of Westminster,  SW1X 8SA

£13,250,000.00

25 Chesham Place, Kensington and Chelsea, SW1X 8HG

£24,000,000.00

66 Townshend Road, City of Westminster, NW8 6KE

Most Expensive Sale Outside London

£16,500,000.00

26 Acacia Road, City of Westminster, NW8 6AR

£8,000,000.00

Jasmin, Rodona Road, Weybridge, Surrey, KT13 0NP

£15,000,000.00

49 Rutland Gate, Kensington and Chelsea, SW7 1PD

Least Expensive Sale

£14,535,000.00

2 Trevor Place, Kensington and Chelsea, SW7 1LA

£7,000.00

43 Main Street, Egremont, Cumbria, CA22 2AD

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