Primelocation data for May shows that asking prices in London increased by 0.27%. Commenting, Andrew Smith, Primelocation.com’s head of research, said: "This is the fifth such rise in the past six months and provides further evidence that the year-long trend of rapidly falling prices has stabilised.
"Prices over the month rose in three of London's five sub-regions. North West London (1.48%) and South West London (0.99%) recorded the largest price rises, while Islington, City & Docklands (-1.27%), the heart of the financial sector in the Capital, continues to be the weakest sub-region in London.
"Prices in the country market have not been quite as resilient as in London. This month they recorded a slight fall of -0.13% after two successive months of rising prices. Five of the six regions recorded price falls with only the South West registering a month-on-month rise.
"Year-on-year, the South West (-9.61%) and the South East (-5.84%) remain the weakest regional markets, which suggests that the pick-up in activity in London has not yet rippled outwards into surrounding commuter belt and second-home areas.
"While there is no absolute correlation between price trends and stock levels, it is worth noting that the recent stabilisation evident in the prime market is closely related to patterns of supply.
"In London, for example, the North West recorded the largest rise in prices (1.48%) and the largest dip in supply levels (-1.62%), while prices fell furthest in Islington, City & Docklands (-1.27%) at a time when supply in this sub-region rose faster than anywhere else in the Capital (0.66%).”
