Demand for prime property has continued to grow in the last year, with the average asking price for the most expensive 25% of homes in Britain up by £15,277.
Compared to 12 months ago, high-end property asking prices are up in every region, except Scotland, the North East and Yorkshire and the Humber, according to PrimeLocation.com.
But it’s not just London experiencing price rises, values in Liverpool, Manchester and Birmingham are also on the up.
Data reveals that the average prime property price is now £482,537, up by 3.3% on last year. As a result, the gap between the asking price of the average home and the most expensive 25% of properties has continued to widen.
But although expensive property continues to perform well, the Royal Institution of Chartered Surveyors (RICS) has found that the ordinary property market remains stuck, with 22% more surveyors reporting price declines.
The strongest regional performance for luxury home price rises was unsurprisingly in the capital, where the most expensive properties have increased by a huge 16.5% in the last year, or £190,038. In the North East, this price could possibly buy you two homes.
The average prime property value in London is now £1,340,713. PrimeLocation reports that the price rise in the capital equates to growth of £21.63 per hour over the past year.
The South East experienced the second most expensive high-end properties, with the average asking price of the top 25% of homes reaching just under £600,000. However, this is still under half London’s prices.
There have been several prime property sales in the capital in the past 12 months, with demand for upmarket homes high, especially from foreign buyers.
Spokesperson for PrimeLocation, Nigel Lewis, comments: “The prime London market has consistently performed well, even during the downturn, but the increases over the past year highlight just how aggressive this market is.
“The fact that this price growth is also accelerating, against a backdrop of a struggling economy, simply reinforces that London’s prime market is totally unique and seemingly unshakeable.”
But it’s not just London witnessing a boom in prime property prices.
The North West and West Midlands have also experienced higher than average increases, at 6.4% and 4% respectively.
According to the data, Merseyside, Birmingham and Greater Manchester have all seen soaring property prices in the higher end of the market.
In Merseyside, the average prime house price rose by £20,416, to £321,598, a 6.78% increase. In Birmingham, prices increased by 5.58% and in Greater Manchester they were up by 5.43%.
Lewis adds: “The UK’s wealthiest homeowners are seeing the value of their properties rocket whilst the rest of the market is flat at best and going backwards in many parts of the country.”1
In August 2011, it was revealed that of the 20 most expensive property sales in Britain in the previous year, just one British person bought a home. This was Formula One boss, Bernie Ecclestone, who spent £101m on a house in Chelsea.