Research article

Prime performance

The prime markets have been far more active than their mainstream counterparts.

The prime markets have been much more active than their mainstream counterparts. In 2011 sales of homes worth £1 million+ were within 8% of their 2007 peak across England and Wales according to Land Registry data.  

In London’s prime markets, which have seen the strongest price growth since the downturn, £1 million+ transaction levels exceeded 2007 levels by 5%. Q1 2012 price growth of 2.8% suggests London continues to outperform.  

Continued stock constraints mean prime London prices are consistently above peak, driving strong growth in £1 million+ transactions outside prime central London, which are increasingly attracting international buyers.

In 2011, £1 million+ sales were more than 25% up on 2007 in Maida Vale, Notting Hill, Camden/Regents Park and Fulham. The prime domestic markets of south west and west London have also benefited, with £1 million+ sales in Battersea and Chiswick up by 28% compared to 2007.

Cascade effect

Generally, the further from London, the more constrained the prime markets become. In Yorkshire and Humber, £1 million+ sales last year were 35% below 2007 levels - a better performance than the mainstream market but much weaker than the South East, where such sales were within 20% of their previous peak.  

In 2011, all regions witnessed a dearth of imported London wealth, though there are now signs of a change, corresponding with a return of price growth in the South East, particularly in some key commuter hotspots.

If these early signs of improvement continue markets such as Sevenoaks, St Albans and Oxford, will see their tally of £1 million+ sales rise further beyond the records set in 2011.

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