Property portal Rightmove's widely-publicised research into house prices has been condemned as "alarmist" for creating unfounded fears of a London property bubble.
Rightmove's most recent research showed the average London asking price had leapt 10.2% in October to £565,863, up an astonishing £50,484 in a single month.
But property specialists the London Central Portfolio said the statistics, which are based purely on asking prices, distort the true picture and produce "sensationalist reports".
It cites Land Registry data, which is based on the actual sale price achieved, showed prices in prime central London rising just 1.64% in Q3, and 7.52% over the year.
Naomi Heaton, chief executive officer at London Central Portfolio, said: “While prime central London has seen robust growth over the last few years, sensationalist reports from commentators such as Rightmove should be treated with care.
"Asking price data is, in itself, misleading as it is based on hope value not actual value. And, whatever the data source, a few multi-million pound properties coming to market can distort the average price and belie true price appreciation.
"There is no reason to believe that prices in prime central London are currently rising faster than the long term average of 9% a year.”
Heaton said that prices in prime central London will continue to increase, as supply dwindles. "Transactions fell to just 1,322 for the quarter, 48% below the average since published records began in 1996. They are now at the lowest level since Q2 2009, the depth of the credit crunch.
"Compared with this time last year, sales in the core sub-£2 million sector of the market have shrunk 16% and the number of transactions under £1 million is now less than 60% of the market.
Whilst the most expensive sale of the quarter took place in Kensington and Chelsea, so did the cheapest transaction in prime central London, a flat which sold for just £66,250. "This sale will baffle commentators who suggest that PCL is only affordable to the world’s wealthiest elite."
The average property price in prime central London is £1,484,597, which may look sensational to some.
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