Activity levels in prime central London’s buy-to-let sector remains relatively sluggish, despite a pick up in the wider housing market in the region.
Fresh analysis of the latest Land Registry shows that prime central London activity levels improved in the second quarter of the year, with greater demand from buyers helping to push up home prices.
Following two years of stagnation, the figures reveal that average prices in prime central London witnessed a quarterly growth of 7.9% to £1.95m, with sales volumes experiencing an annual increase of 4.8%.
But the recovery in the buy-to-let sector is far slower, with the average price of a home snapped by a private landlord increasing by 1.3% to reach an average of just under £810,000.
Naomi Heaton, chief executive of London Central Portfolio, said: “The increase in average prices appears to reflect a greater proportion of high value properties being sold, rather than any significant underlying growth.
“Not only have we seen some very large individual sales but transaction data shows the £5m - £10m bracket was the most active in Q2 with a 23% increase over Q1. This can be attributed to international homebuyers taking advantage of notable price discounts, alongside beneficial currency exchange rates.
“The buy to let sector, on the other hand, is seeing a much slower picture as investors continue to adopt a wait and see attitude.”