London residential property market growth in 2013
The property market has been growing steadily over years in UK. Knight Frank (2013) report states that the average prices in the prime central London have increased by 60% since the financial crisis downturn in 2009 for residential sales. The average prices have also risen by 7% in the last 12 months. The value for the £5m-10m price houses has increased by 3.1% and by 1.6% for the £10m+ price houses in 2013. Moreover, even higher value rise is observed for the sub-£1m and £1m-2m price brackets with 10% and 8.2% growth respectively. Overall, the market for sales remains very strong and there was an increase in number of applicants in 2013 by 52%, while the number of sales agreed is up by 48% year-on-year.
The ‘super-prime houses’ category
The ‘super-prime houses’ category includes the houses which price is £10+. The significant increase is observed from March 2009 to June 2012. The graph shows 40% rise in prices since the market upturn in March 2009. It is also stated that super-prime London property tends to be very popular among international buyers whose children study in schools in UK. The statistics show that there are less and less pupils leaving London schools from year to year. Many families stay in London longer than before. Knight Frank explains it by the banking employment market. Mr Northey says that ‘Until recently, bankers who moves to the UK with their families for work purposes were often contacted to stay for two to three years, but many are now signing five-year contracts’. Many London schools have noticed an increased interest from different nationalities such as French, Italian, Greek, Russian, Kazakhstani, South American, Japanese, Chinese, US and Israeli. The presence of the Japanese school in Ealing (London area), popular French Lycee schools in central London and energy giant Chevron in Surrey can explain the popularity of London among Japanese, French, Russian and Kazakhstani nationalities.
Which nationalities prefer to buy super-prime houses in London?
The graph on the left illustrates the spread of buyers who are targeting the top of the London market with nearly 67% coming from overseas over the past two years. It is noticed that 33% of all the buyers come from UK when 18.6% come from Russia and CIS and 15.4% from Middle East.