Prime London lets and sales hit record-high levels
Monday, 1 August 2011 12:06 PM
Property prices for sales and rentals in prime central London have hit an all-time high, Knight Frank has reported.
According to the estate agent's July Prime Central London Sales and Lettings Indices, key property prices have risen by 9.6 per cent over the last 12 months and are now 35 per cent higher than the post-credit crunch trough of March 2009.
Prime London property prices rose by 0.7 per cent month-on-month in July, taking values to a record high.
Prime rents in the capital rose by 0.3 per cent in July, taking the increase in the three months to July to one per cent. Rents are also one per cent higher than their previous peak in March 2008.
Gráinne Gilmore, Head of UK Residential Research at Knight Frank, said: “While owners of properties in central London have seen the value of their homes rise by nearly ten per cent since July last year, average values in the wider UK market have fallen by over one per cent during the same period.
“Sales activity in the prime central London market has been strong in recent months, with a rise in new properties coming to the market, and a subsequent rise in the number of exchanges."
The rising level of supply has gone some way to addressing pent-up demand in the market, Gilmore said, but the desire for prime properties in the capital looks set to continue, signalling a further rise in prices throughout the rest of the year.
“The strongest sales markets are in Chelsea and Mayfair, where values have risen by 7.7 per cent and 7.2 per cent respectively over the last six months,” Gilmore added.
“The Belgravia lettings market is leading the way with a 1.8 per cent rise in values over the last three months and the highest levels of demand.”
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