August 2011 | Low availability forces prices and rents higher | There are scarce few properties available to buy in Prime Central London and with demand improved in 2011, sales prices are being forced notably higher. Strong positive price growth is in contrast to annual price falls elsewhere in the UK. A lack of properties to rent is the key feature of the lettings market. Demand is strong and this has led to significant increases in rental values.

Market Overview
The Prime Central London residential sales market has been particularly strong during the first half of 2011. The key feature of the market is the low level of available supply but strong overseas demand, robust domestic demand and an increase in transaction levels are other key characteristics. The result has been strong upward pressure on prices.

Furthermore, London, and Prime Central London in particular, continues to buck the trend of falling prices elsewhere in the UK. Prime Central London sales price growth, at 5.9% in the year to Q2 2011 is a stark contrast to the 1.2% average decline seen across the UK.

There is a significant lack of property to buy in Prime Central London. This is the case across the full spectrum of property sizes and types and the position is deteriorating because many international purchasers are not simultaneously selling another London property to
release onto the market. The situation is so acute that prices are being forced notably higher. This is frustrating buyers and is giving vendors the upper hand in negotiations.

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