Fastest London house price rises in 28 years
Thursday, 15 Mar 2007 17:24
Prices rose strongly in Kensington and Chelsea in February
The top-end of London's housing market is rising at its fastest rate for 28 years, a leading London estate agent reveals today.
Research from Knight Frank on prime central London properties shows prices have gone up 31 per cent since February 2006.
There was also strong growth in February with prices for London's priciest properties in the most desirable postcodes up by 2.6 per cent.
"Our forecast that prices in prime central London will grow by 12 per cent this year could well be an underestimate," Liam Bailey, Knight Frank head of residential research.
"Prices have already moved higher by 5.6 per cent in the first two months of the year and we expect that the next two to three months will see the strong market conditions remaining – with many potential buyers still waiting for the right property to become available before moving into the market."
The estate agent added London prices have been increasing due to the imbalance in supply and demand, as international buying interest and strong City bonuses increase, and people move home less often.
Knight Frank also expects the introduction of Home Information Packs (Hips) to continue this trend, as people continue to be reluctant to move.
House prices in prime areas such as Belgravia, South Kensington and Chelsea have experienced the strongest price rises this year, the estate agents reports.