Average property prices in Greater London hit £600k

The average price of property in Greater London has moved past the £600k mark for the first time in history, according to new data.

Land Registry figures for Q1 2016, analysed by investment firm London Central Portfolio (LCP), found that average prices in Greater London increased 7.9% over last quarter and 14% over 2015.

For property in Prime Central London, that figure stood at £1,673,906 – a year-on-year increase of 4.7% and up 2% from Q4 2015. Similarly, sales volumes for the centre of London hit pre-recession levels with a like-for-like increase of 33%.

Naomi Heaton, LCP’s CEO, said: “Whilst making for somewhat staggering reading, the increase in sales is not actually surprising. Buyers, wanting to access the PCL market, rushed in during Q1 to beat the 3% Stamp Duty deadline which created an uncharacteristic surge.

“This one-off anomaly is likely to be steeply eroded next quarter, magnifying the contraction in sales already anticipated across the rest of the year.”

Looking forward, LCP has forecast prices to soften as transactions decline following the upsurge of buyers in Q1 and tax changes hitting the higher end of the market.

Naomi continued: “As has been demonstrated time and time again, Central London slows down in the face of investor uncertainty; for example after 911, during the Iraq war and in the face of a weak stock market in the early 2000s.

“All the evidence, however, suggests that the market rallies quickly thereafter, particularly at the lower price points.”