Prime London property prices are at record highs for both sales and lettings.
House prices in exclusive areas such as Knightsbridge and Mayfair have risen by 9.6% over the last 12 months and are now 35% higher than the post-credit crunch trough in March 2009, Knight Frank reported this morning.
In July alone, house prices in prime London rose 0.7%.
Meanwhile prime London rents rose by 0.3% in July, taking the increase in the three months to July to 1% and making rents 1% higher than their previous peak in March 2008.
Noel Flint, head of London Residential at Knight Frank, said: “Once again the main reasons for high strength demand in the prime central London market are the overseas purchasers and low stock levels.
“In the last month our offices have seen more interest from buyers from continental Europe, possibly due to the ongoing Euro-zone crisis.”
Tim Hyatt, head of residential lettings at Knight Frank, and President of ARLA, said: “Rental demand continued to rise in July but stock levels are still constrained in certain areas.”
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Comments
Presumably these sky high London prices skew the statistical national average as well.
Central London is just one huge bubble which is going to go off with a massive bang.
Lots of foreign investors are getting out of weak inflation eaten savings and taking advantage of the weak £. Its like they never learned the lesson of the international house price crash.
London and China's property bubbles are going to collapse in the next couple of years with serve economic implications.