Luxury home prices leaving London behind

propertykl'Hedgehog House, Dore, on sale for �1.3 million
propertykl'Hedgehog House, Dore, on sale for �1.3 million
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Prices for luxury properties in Sheffield are rising faster than anywhere else in the country, new research has revealed.

In the first half of 2011, price rises for top-end housing in the city were almost four times that of London, usually seen as the centre of the premium property market.

A number of cities beat the capital but Sheffield came top, at over three times the British average price rise.

Despite a small drop in prices over the past month, Sheffield still thrashed the competition. Properties in the top 25 per cent of the market soared by 10.6pc in Sheffield, with Bristol the closest runner-up at 9.7pc, despite a monthly increase.

Leeds saw a 5.5pc rise in the first half of the year, whereas premium London property prices only increased by 2.7pc.

It seems the more expensive end of the market is thriving, particularly in Sheffield, with the rest of the market taking longer to catch up.

The property market only recorded growth of 0.03pc, to an average of £220,937 nationwide, compared to an increase of 0.5pc in top properties.

The average prime asking price in Sheffield is £319,764. The national average is £150,000 more, although this is skewed by an average of £1,149,129 for a prime property in London.

Nigel Lewis, of PrimeLocation.com, which carried out the research, said: “Set against a maelstrom of bad economic news, the prime property market in the UK has held steady during the first half of 2011. ”

Joanne Bloor, managing partner at Bloor and Co estate agents, of Abbeydale, Sheffield, said they have seen an upturn in sales of high-end properties.

“I think quite a few people have been in rented accommodation and are now looking to buy, and there is also quite a lot of relocation into the city. Sheffield, at the moment, is holding its own.

“We put a £1.3m property on in Dore 10 days ago, and it has already attracted viewings, which in the current market is amazing. Properties in S10, S11 and S17 are selling well too.”

Chris McMahon, managing director at Norrow Estate Agents, of Paradise Square, said: “In the last six months, we have seen quite a big upturn in the rental market right across the board. But sales are dead. The only way anyone is selling anything at the moment is to really reduce the price .”