Landlords seeking capital appreciation from a recovering prime London market have been provided with a league table by a debt advisory service.
The Henry Dannell company say that while prime London property prices have remained largely flat on a year on year basis, life is starting to return to the capital’s top tier, with some postcodes seeing average sale prices climb by as much as 114 per cent.
The company has analysed data for sales above £2m in 51 high-value London postcodes.
This discovered an average selling price of £3,229,509 in 2021, down when compared to 2020 albeit by a marginal 0.8 per cent.
The largest appreciation was in Camden’s WC1A postcode, where the average sold price for £2m+ properties increased by 114 per cent between 2020 and 2021.
The borough's southern tip is also home to the second-largest increase, with the WC1N postcode seeing the average sold price increase by 55 per cent.
Westminster’s W1W (35 per cent) and SW1H (34 per cent) postcodes have enjoyed the next largest uplift in prime London sold prices, with the SW5 postcode in Kensington and Chelsea (28 per cent) and the SW1P (26 per cent) postcode, again in Westminster.
While Westminster has enjoyed some of the largest annual increases, the borough’s WC2E postcode has also endured the largest market decline.
With an average sold price of £3.475m in 2021, sold prices have plummeted by 71 per cent. The WC2B (down 46 per cent) and WC2R (down 41 per cent) postcodes have seen sold prices drop.
Henry Dannell director Geoff Garrett says: “There’s certainly a renewed sense of confidence across prime central London and early indicators suggest that 2022 should be a very positive year for this segment of the market, with an uplift in foreign buyer demand likely to be the most significant influence behind an anticipated revival in both transaction levels and sold prices.
“We’ve already seen the foundations of this market revival being laid in 2021, with the majority of postcodes registering an increase in sold price values, some doing so quite significantly.”