Who’s Buying London’s Prime Property?
New Figures Released by Hamptons International
Hamptons International published new figures today that estimates since 2011 nearly a third of transactions in the prime central London postcodes have been made by home movers (31%). The figures suggest that home movers have made up the same proportion of investment in prime real estate as investors over the last 6 years. Second home owners, developers and first time buyers accounted for the remaining share.
Unsurprisingly first time buyers in Prime Central London are playing less of a role in the local market, than when prices were lower a in 2011. In six years the average price of a prime central London property has increased by £640,000, from £1,069,000 to £1,710,000, meaning that buyers who have brought and sold over that period have netted an average of £106,000 profit per year.
A 60% increase in prime central house prices would seemingly account for the decline in first time buyer share. That said for a select few first time buyers, their ability to service a mortgage doesn’t affect whether they’re able to buy. Nationally around 4% of people buying their first home paid for it in cash last year, but in Prime London neighbourhoods it was 10%.