Prime property beats recessionThursday, 26 April 2012 09:11
Prime property asking prices in the UK have increased by 22 per cent since recession hit in 2007.
According to Prime Location’s property index, prime properties have seen an average asking price rise of £86,785 since the recession was announced.
And with a double-dip recession this trend does not look to slowdown.
In London this price performance is almost double the average with asking prices rising a whopping 40 per cent since 2007.
At the same time the overall property market has seen the average asking price drop by £11,000 in the same time period.
“The overall UK market has not recovered substantially since the early years of the downturn, but this hasn’t affected all homeowners equally,” Nigel Lewis, property analyst at Prime Location said.
“Owners of prime homes saw their property values perform well as demand for the most desirable properties continued to rise, lifting prices with it.”
While London outperforms the overall property market other areas are also following the prime property trend.
The east has seen a 35 per cent price rise and the west has seen prices grow by 23 per cent since the recession.
The results also suggest the seven per cent stamp-duty for properties valued at more than £2 million has had little dampening effect on the prime property market.