London property prices have risen more than 8% in the last year for properties worth £1 million, with the number rising from 34.6% in September 2011 to 43% this year, along with an average annual property price rise of 11.1% in the last quarter.
According to estate agent Marsh & Parsons’ latest London Prime Market Monitor, in September 2010, 57.1% of £1 million properties were located in the traditional prime central locations such as Chelsea and Kensington. This figure has now dropped to 52.7% as areas to the south and west of more traditional prime central hotspots see strong price growth.
Strong property price growth in the past two years has also boosted the number of homes worth £2 million in prime London. Around 18.5% of all homes in prime London are worth £2 million or more, compared to 14.3% a year ago, while 35.5% of homes in prime central London are now worth £2 million or more.
Peter Rollings, chief executive officer of Marsh & Parsons, said, “After the meteoric price rises seen in prime London in the past few years, the number of property millionaires in the capital has also shot up. Properties no longer have to be palatial to be worth £1 million If they are located in a popular prime area, there’s a good chance they’ll be worth a seven figure sum. They do not necessarily have to be mansions.”
Despite the rise in the multi-million pound properties last year, the London house price rises are showing signs of slowing. In the last quarter, London house prices rose by 3.5%, down from 3.7% in the second quarter of 2012, which may indicate that the price growth in London is moving towards a sustainable rate of increase.