Million pound houses boost average price in W13

The average price of property in W5 since the end of the third quarter of 2010 is £446,456 according to the latest figures from the Land Registry. This is marginally down from previous levels. Prices in the area are now below the levels of three years ago.

W13 seems to be doing a bit better with an average price of £467,715 over the same period when 37 properties were sold. However, this includes the sale of two houses for over £1,000,000 (on the Avenue and Carew Road). Excluding these two transactions the W13 average is £411,584 down slightly from the previous quarter.

Gary Sinton of local estate agents Sinton Andrews says imminent stamp duty changes may have an impact on the market:

'' I envisage that the increase in stamp duty effective on £1m+ properties from April will possible have a short term effect on that market but the general shortage of quality homes for sale will soon negate the effect.''

London property prices are up by 6.8% in November compared to last year. This is the slowest annual rise in 2010 but remains the highest level in the country.

This brings the average property price to £341,009, in comparison to the figure for England and Wales, which is £164,773.

Andrew Nunn of Andrew Nunn & Associates said, "The 2010 market witnessed some very healthy prices being achieved due to a scarcity of supply. This became more severe as the year developed with potential sellers failing to find suitable alternative property. Demand surpassed expectation with domestic buyers benefiting from the recovery of the London financial sector and overseas buyers benefiting from exchange rates and uncertain home economies.

"Prime property is selling for record prices whilst secondary and tertiary property is more price sensitive. Should interest rates rise by the middle of 2011, a likely scenario given current and future inflationary pressure, then more supply will inevitably come to the market. Once buyers see they have choice then the market will calm down and we will see single figure price appreciation. The message is clear should you be thinking of selling in 2011 then take well informed advice early in the year and do not be suckered in to "the highest price" - it may work against you and remember the sentiment in any market can change very quickly"

For the country as a whole November's data shows a fall of 0.6%. This is the third consecutive month in which prices have fallen. The annual house price growth rate has continued to decline for the sixth month in a row, with an increase of 2.2%. This is the smallest growth seen in 12 months.

Nationwide's House Price index for December which is based on offer prices rather than actual sales like the Land Registry did show an increase.

Martin Gahbauer, Nationwide's Chief Economist, said, "When house prices are trending down only modestly rather than decisively – as has been the case in recent months – it is not unusual to a see a mixed pattern of monthly declines and occasional increases."

He added, "London and the South East saw particularly large price gains during this period (2010), as the scarcity of property was most acute in these regions. London will also have benefited from the strong recovery in the financial sector, which is an important driver of buyer confidence and housing demand in the capital."

Properties Sold in the W5 Area in October 2010

Properties Sold in the W13 Area in October 2010

Source: Land Registry

Data in this report is subject to crown copyright protection.

12 April 2011