Prime central London property prices continue to rise

The price of prime Central London property continued to increase this month, putting homes in sought-after parts of the capital even further out of reach of many buyers.

According to the latest data from Knight Frank, prices rose by 0.7 per cent in September compared to the previous month, and ten per cent compared to September 2011.

The best performing areas were Knightsbridge, Marylebone and Hyde Park, which all experienced annual growth of more than 14 per cent.

On average, prime property values in Central London are now 15 per cent higher than they were in March 2008 at the peak of the financial crisis.

The increase comes despite a 40 per cent rise in the top rate of stamp duty, as well as proposed rules to charge an annual tax on properties worth £2 million and above.

Knight Frank pointed out that overseas buyers are continuing to support the market in the capital. They now account for 41 per cent of buyers of £1 million in the prime London sector and more than 50 per cent of homes worth £2 million or more.

The Estate Agent's index classifies prime Central London property as that in the Belgravia, Chelsea, Hyde Park, Kensington, Knightsbridge, Marylebone, Mayfair, Notting Hill, Regent's Park, St John's Wood, Riverside, the City and the City Fringe.

With average prices in these areas coming in well above the budgets of most of the capital's residents, lettings in London may be a more affordable option for those who hanker after an exclusive postcode.

According to Knight Frank figures released earlier this month, prime Central London rents actually fell by 0.4 per cent in August, meaning they are now 1.7 per cent lower than they were a year ago.

Rents in these areas have slowly been declining since October 2011, except for June this year when they remained broadly stable.

Posted by Martyn Glynn
 

Published 27th September, 2012

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