New figures released today show 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. That’s according to the latest Prime Index from property website PrimeLocation.com.
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 has rocketed in the opposite direction. 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.
Nigel Lewis, property analyst at PrimeLocation.com says:
“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.
“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.”
