The volatility in the financial markets, Euro crisis and potential for a global meltdown only seem to help boost the prices of flats and houses in Kensington and Chelsea as investors continue to seek safe investment havens. Yesterday, we exchanged contracts on a flat in Penywern Road in Earls Court, SW5 at 8% over the asking price. We were instructed to act alongside a local agent to boost our client’s exposure to a more cosmopolitan applicant base. We were able to solicit four bids over the asking price to the local agent’s single bid, naturally our client was delighted. Prices reflect the fact that the number of applicants wanting to buy are significantly higher than last year with supply continuing to be low in Kensington and Chelsea and Earls Court.


Quality appears to have done better than mediocrity. We observe that properties in the same parts of Chelsea have appreciated at different rates reflecting their relevant quality. We have recently sold a flat in Redcliffe Square for the second time in two years, both times the flat achieved the record price in terms of £/sqft, with the most recent sale showing an appreciation of 30% in the two years. First time buyers continue to struggle to find the initial deposits and these price increase are being driven by top end demand eventually percolating down through the market to lower levels.


Kensington and Chelsea remain the area of choice among the well heeled and international buyers looking for quality with streets like Onslow Square, Onslow Gardens, Evelyn Gardens, Cranley Gardens regularly topping the list. The latest statistics from the Land Registry supports this. For Kensington & Chelsea, the annual increase in the last year to September was 7.8% increase, but over the last quarter, this has risen to 10%. This is the best performance for any of the higher-end areas of London. When you look at these statistics further by type of property, although there is good overall performance in K&C for flats prices for semi-detached houses these have risen by almost 19% in the last year.


Seasonally, the estate agency business is usually quieter around the festive period, but given the turmoil in the financial markets, we now expect demand for sensible and desirable flats and houses in Kensington and Chelsea to continue, apace, bucking the usual party season slow down.


Season Greetings to All!


Statistics source via the BBC


http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/html/aw.stm#table