New Land Registry quarterly sales figures show house prices across England and Wales were 2% down in the third quarter of this year, compared with the same period last year.
But once again, prime central London bucked the trend, with prices in the boroughs of Kensington & Chelsea, and Westminster, hitting new records.
The average price of a property in Westminster rose by 7% in the third quarter to £1,006,407, breaking the £1m average price barrier for the first time.
Property prices across central London as a whole rose 8.7% on the previous quarter and 13% on Q3 last year.
Naomi Heaton, CEO of property investment fund managers London Central Portfolio, said: “Average prices in prime central London now stand over 15% above the pre-credit crunch peak.
“It is clear that investors still recognise the value of London’s premier real estate as a safe haven investment, as well as a hedge against inflation and politico-economic instability elsewhere in the world.
“For the time being, Eurozone buyers are likely to be leading the pack.
“Nevertheless, transaction levels are still down by almost a third against the long-term levels. This is a symptom of vendors sitting tight, rather than a reduction in buyer appetite, ensuring continued upward pressure on prices.”
She warned: “The traditionally buoyant autumn market has failed to materialise and we do not expect much action in the market for the rest of the year. Investors around the world seem browbeaten by the incessant stream of negative news.”
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