The Prime Central London team was recently instructed to provide valuation advice for loan security purposes on a portfolio spread across Knightsbridge and Chelsea. The instruction comprised the valuation of approximately 15 luxury properties with a portfolio value of circa £40,000,000.

High value stock in the central London market continues to attract interest, albeit there has been a slow down in the number of transactions; Q4 2008 and the aftermath of Lehman Brothers being particularly slow. The marginal units are suffering the most, with the key drivers moving back to an emphasis on an exacting location and a highly specified finish, tailored towards the intended target market.

The residential market is changing rapidly and there has been a downward pressure on values even in the prime areas of Central London. The level of which there is particular caution at present is the £1 million to £5 million bracket although the £5 million plus level has also weakened. This £1 million - £5 million level has typically attracted UK buyers and with the current financial crisis this market has weakened dramatically as it has been historically reliant on city bonus money. This market has struggled over the last year however agents have indicated increased activity since the start of 2009. The prime London Market is beginning to show some signs of interest from Middle Eastern money, with some American interest and less Russian activity.