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Is the £70m deal a sign of things to come?

The revelation last week that a London property had been sold for a record- breaking £70m illustrated the buoyancy of the housing market once again.

While the sale of the Kensington Palace Gardens home to steel magnate Lakshmi Mittal may be in a different league to virtually all other UK property deals it does at least show that people are still willing to face up to ever-rising house prices.

When the property was first put on the market in 2001 it failed to achieve its £65m asking price and was knocked down for £50m to Formula One racing tycoon Bernie Ecclestone who has reaped a hefty return on his investment So, Mortgage Strategy asks: Are multi-million pound property deals a sign that the market will continue to boom rather than bust as some have predicted?

Bill Dudgeon, The Mortgage Business

In any market you get these sorts of deals that come along maybe once in a lifetime – that will always happen. But one property does not a market make.

David Hollingworth, London & Country

This does sound like a unique proposition and probably shouldn&#39t be taken as a barometer of the market.

Elliot Nathan, The Marketplace

It&#39s more to the point that there have been more millionaires created in this country and so million pound-plus properties are in greater demand. But those types of properties do not have much relevance for the normal market. Only the outrageously rich can pay these sorts of sums for a place to live.

Simon Bucknell, Chelsea Mortgage Management

While it would be nice to point to this transaction as evidence of a boom, it is so freakishly large that we should not get carried away with predictions. What is worth noting though is that property transactions in London in excess of £10m are probably a lot more common than people think.

Roy New, sole broker

While this is obviously in the premier league of property transactions it is fantastic for the market. It goes to show that the market is strong and continues to get stronger. As long as rates stay down it will keep on growing.

Rob Clifford, mortgageforce

I do not think this is a fair barometer. It&#39s an extraordinary transaction and should be seen as such. It&#39s no more relevant to the market than the £16,000 property that was sold the other day in Glasgow.

Andy Wilgoss, Square Mile Mortgage Finance

Was this a signing-on incentive for Becks to join Chelski? Seriously, this was certainly a unique transaction and should not be seen as a barometer of the market. Whilst Square Mile continues to be busy with purchase business, there has recently been an increase in the number of down valuations in London and the South-East.

Kevin Duffy, Hamptons

You cannot draw any conclusions from this transaction. It was a one -off property with highly unusual features. To me it is madness. If anything, there needs to be some common sense restored to the London market. To be able to afford a mortgage on a property of this kind you would have to be a director of Hamptons.

Andy Pratt, Alexander Hall

Something like this does not come round often. It is a world apart from the rest of the market. The biggest deal Alexander Hall has done was a £9m loan for a £12m property. There is obviously quite a gulf between that and £70m.

Tim Dawson, Mortgage Express

I don&#39t believe you can read anything into this at all. The market in these types of transactions is so small that every one is individual. This is the biggest property transaction ever for residential property and that record is not going to be broken again for a few years. This transaction is neither an omen for better or for worse – it is just a one-off.

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