Overseas buyers fuelling growth in prime London property market
The value of prime property in London is being pushed up partly by strong interest from international buyers, a new report has noted.
According to figures from Marsh & Parsons, purchasers from other countries have been "flocking to prime property" in the UK capital in the last few years.
Since interest among domestic buyers also remains strong, property values have therefore headed upwards.
Indeed, data from Marsh and Parsons indicated that house prices in the prime London market went up by 3.5 per cent between July and September 2012.
This means that the number of properties in these locations that are worth a seven-figure sum has gone up.
Some 43 per cent of homes in prime areas are understood to be worth a minimum of £1 million, compared with 34.6 per cent in September 2011.
The intense level of demand means people are no longer concentrating solely on central locations, such as Kensington and Chelsea.
"With the supply of homes especially constrained in the central prime areas, wealth has been overflowing into areas like Balham, Clapham and Brook Green, pushing up prices and boosting the number of £1 million properties across the capital," said Peter Rollings, chief executive of Marsh & Parsons.
Some three per cent of properties in the prime London market are now worth this amount, the estate agent noted.
The proportion of £2 million homes has also gone up in the last year. Whereas 14.3 per cent of residential properties in prime London were valued at this level in September 2011, the figure had gone up to 18.5 per cent by September 2012.
Mr Rollings described the increase in property values in the prime London market over the last few years as "meteoric" and said it has led to a surge in the number of property millionaires in the city.
He added that homes in London no longer have to be mansions or palaces in order to command seven-figure asking prices.