Three-bed houses in London bubble up by £729 per day

The average price of a three-bedroom property in prime London has risen by £729 per day during the last year – equivalent to £250,000 in just 12 months.

The statistic – one for the “bubble, what bubble?” brigade – means that owners of three-bedroom properties in prime London are earning almost eight times the median salary for Londoners (£658 per week) in capital appreciation.

According to Marsh & Parsons, a large part of the increase was gained in the last three months, when a strong 6% quarterly rise increased the average value of three-bed properties by an extra £93,231.

Three-bed properties have risen in value at a faster rate than other properties in prime London, says the firm.

The overall rate of growth, reflecting all sizes of property combined, was 4.3% in the past quarter and 12.9% in the past year.

Peter Rollings, CEO of Marsh & Parsons, said: “These are extraordinary times for the prime London property market. Smart buyers can earn more money from their house in a year than by going to work in a very well-paid job. With returns like these, it’s easy to see why people are queuing up to buy prime London property.

“It’s always difficult to call the ‘top’ of the market. But while comparisons are being drawn with 2007, the current conditions are actually remarkably different.

“It’s difficult to see how prices can fall while demand for property remains so high. Compared to the same point last year, we have seen a 20% increase in demand and a 25% fall in the supply of property.

“Prime London is still a strong sellers’ market and jackpot prices are fast becoming the norm.”

Prime London covers a large stretch of the capital, including places such as Clapham and Balham which were not considered prime until relatively recently.

 

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