Prime London Home Prices Still Rising

Prime London Home Prices Still Rising

Residential News » Europe Residential News Edition | By WPJ Staff | July 29, 2013 11:28 AM ET

There are no signs of a slowdown in London's prime central residential market.

Prices inched up another 0.5 percent in July and are now 4.2 percent higher than at the beginning of the year, according to the latest Knight Frank report. Prices have risen by 7 percent in the last year London's priciest neighborhoods, the consultancy found.

Prices are now 60 percent above the post-crisis low in March 2009, Knight Frank reports.

Knight Frank originally predicted that prices would remain unchanged in 2013, due to the introduction of a stamp duty. But a weakening in the pound and an improving economy have boosted the volume of sales, which is up 8.2 percent year-on-year.

Knight Frank now forecasts that prices will rise 6 percent in 2013.

"Key factors driving price growth and interest include the city's reputation as a safe haven for investment, and the value of the pound," Knight Frank said in the report.

Property viewings in prime central London over the year-to-date are up by 15 percent compared to the same period in 2012 and the number of new applicants is up by a similar level, the firm says.

The strongest price growth has been seen in the sub-£1 million price bracket. Prices in the "super prime" market above £10 million remained unchanged in the last month.

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