London property prices rise in January
Thursday, 10 February 2011 2:37 PM
Tight supply of quality stock and consistently strong demand for property pushed house prices in central London even higher in January 2011.
According to the latest Prime Central London Index from Knight Frank, average values had increased by 1.1 per cent last month, with recent price performance contributing to an annual rise of 10.3 per cent in the 12 months to January.
The survey suggests that price growth had been led by the Knightsbridge and Kensington markets, where values have risen by almost six per cent in the past three months.
Central London prices are now 26.9 per cent higher than in March 2009 and just 3.4 per cent lower than their all-time peak in the same month a year earlier.
Liam Bailey, head of residential research at Knight Frank, commented: "London has bucked the wider UK trend in recent months, with strong price growth and resilient demand for property. Whereas prices in the wider UK market fell by over one per cent in the year to January, central London saw continued double digit growth.
"The real drivers of this demand have been overseas buyers, especially Europeans, and also City-based buyers, who have been more numerous than expected given the uncertain discussions over bonus levels," he added.
Noel Flint, a partner at Knight Frank Knightsbridge, said that in the months ahead he expected supply shortages to continue, with sellers still undecided on whether now is the time to sell.
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