While the majority of the country’s real estate remains mired in a depressive value slump the United Kingdom’s (UK) prime property market is experiencing significant gains. Property website PrimeLocation.com reports that the asking prices of prime real estate in the UK has risen 40% since the onset of the global financial crisis in 2007, putting owners of these plush properties an average of £86,785 ahead since the downturn. Analysts say the gains have been observed in a fairly wide segment of the prime property market, meaning that more than just the very finest homes are enjoying appreciation. For more on this continue reading the following article from Property Wire.
Prime property asking prices have increased by 40% since the recession of December 2007 while overall property prices are down £11,152 over the same period, new figures show.
It means that prime property owners are on average £86,785 better off now than they were in December 2007 as asking prices rise at the top end of the market, according to the latest index from property website PrimeLocation.
Since the recession began in late 2007, the average asking price of a home in the UK has fallen by over £11,000, but the value of prime property, the top quarter of the market by value, has rocketed in the opposite direction.
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In December 2007, asking prices for prime properties averaged £387,969, a figure that has increased by 22% since then, average to £474,754.
In contrast, the general market has seen prices slowly sliding down over the past few years. Asking prices fell for a continuous six month period in 2011, and the current asking price of a UK property is now £219,526, or £11,152 less than pre-recession prices.
The increases at the top end of the market are consistent across the country, and can be seen in every UK region, though some places have seen prices appreciate much faster than this. London prime properties have seen asking prices rise by 40% and those in the East of England are 35% higher.
The West Midlands has seen prices rise £73,174 (23%), the South East of England £99,286 (21%), the North East of England £49,925 (19%), the North West of England £47,086 (15%), Wales £43,997 (14%), Scotland £44.225 (13%), Yorkshire and Humber £37,650 (12%), South West England £9,325 (2%), and the East Midlands £1,260 (0%).
‘The overall UK market has not recovered substantially since the early years of the downturn, but this hasn’t affected all homeowners equally. While the overall UK market saw property prices plummet in early 2009 as the credit crunch took hold, owners of prime homes saw their property values perform well as demand for the most desirable properties continued to rise, lifting prices with it,’ explained Nigel Lewis, property analyst at PrimeLocation.
‘This isn’t restricted to the hyper exclusive parts of central London either, though these areas have admittedly benefited from interest from international investors. Instead, it’s a more general flight to quality that we’ve identified in every area of the country,’ he added.
This article was republished with permission from Property Wire.