London Evening Standard/London
The sudden slump in the value of the pound has given the central London property market a dramatic boost at the start of the spring “buying season”, according to a report out yesterday.
Sterling has fallen by about 7% since the start of the year, making London property far more affordable to wealthy foreign buyers armed with dollars, euros or Chinese yuan.
Sellers are in the strongest position in the most desirable areas of central London, with Kensington & Chelsea seeing a 6.2% monthly rise in asking prices to £2.32mn, up 15.8% on the same time last year, according to property website Rightmove.
Westminster properties came to the market in March priced at an average of £1.58mn, up 5.8% in a month or 14% in a year.
The biggest annual rise was 16.8% in Hammersmith and Fulham, where average asking prices breached £1mn for the first time.
Across London, average asking prices are 1.9% higher than in February, at £496,298, and 9% higher than last year.
Although there is no guarantee that asking prices will be achieved, the sharp upward trend suggests a strong “sellers’ market”, with vendors and agents confident of finding buyers at higher prices.
The upward pressure on prices has been intensified by a shortage of homes on the market at the start of the peak buying season.
Rightmove director Miles Shipside said: “London’s housing market continues to forge ahead, with seller pricing power still holding up in spite of the 9% jump seen in the last 12 months.
“Overseas buyers transferring their dollars or euros into sterling have found their buying power boosted since the beginning of the year. Many new-build developers have been mining this rich seam of overseas cash very successfully.”