House price growth returns to a steadier, healthier rate as market stabilises, according to estate agent Marsh & Parsons’ latest London Property Monitor.
Quarterly house price growth slowed to 3.1% across Prime London, down from 4.3% in the first three months of the year. Over the course of Q2 2014, monthly house price growth in Prime London fell from 1.8% in April to just 0.4% June, as the market returns to more normal conditions.
At the very upper echelons of the market, this trend is even more acute as house price growth levels off. In the past year, there has only been just a 1% increase in the proportion of Prime London properties worth £3 million or more.
Over the last three months, supply of available of property in Prime London has jumped 26%, which has calmed the level of competition in the market, and stabilised house price rises. Overall, we’ve seen the number of registered buyers per property in Prime London fall from 24 in January to 16 in June.
Peter Rollings, CEO of Marsh & Parsons, comments: “After a frenetic start to the year, the pace of house price growth has slowed this quarter as the market stabilises and returns to more normal trading conditions. With more choice coming onto the market, sellers are able to find their next onward purchase and consider trading up. Calmer conditions in the market have meant buyers view purchasing London Prime property as a less daunting process than has been the case previously.”