South West London house prices surge

Prime central London house prices continue to show steady year on year growth, while the predominantly domestic markets of southwest London have recorded double digit rises as a wave of equity pushes out from the core central zone, says international real estate adviser, Savills.
 
Values in prime central London rose by 1.9 per cent in the three months to the end of September, according to the Savills prime central London index.  This takes annual growth to a relatively modest  5.6 per cent, but continues a record-breaking period of steady, single digit annual price growth.   
 
There are now clear signs of outer prime London playing catch-up, with average prices across the wider markets of prime London rising 3.3 per cent in the quarter and 9.2 per cent year on year.
 
The standout performer is prime southwest London – a largely domestic market that stretches from Fulham to Wimbledon – where prices rose 4.0 per cent in the last quarter and 11.8 per cent year on year.    These markets are now on average 28.1 per cent above their 2007 peak, just behind prime central London at 30.1 per cent. 
 
Less accentuated but nonetheless robust price growth  has also been seen in other locations that have historically lagged central London, such as Islington and Wapping.
 
Properties valued up to £1million have performed particularly strongly, while year on year growth in the £10million+ central London sub-market is just 1.8 per cent as prices appearing to have broadly plateaued at 38 per cent above their 2007 levels.