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News: Prime London Property Prices on the Rise

Thu, 25 Jun 09

The value of prime residential property in central London is rising for the first time in two years, according to upmarket estate agents Savills...

Prices in the sector have risen by 4.3 per cent over the last three months, dampening concerns that London’s allure as a financial location and home for cash-rich buyers has been damaged by the increase in the top rate of tax.

The growth is the first since summer 2007 when values began their 20 per cent fall amid the credit crisis.

Yolande Barnes, Head of Residential Research at Savills, said prime property often leads the housing market out of a slump but warned that such quarterly growth is unlikely to be maintained, with the rise exacerbated by a low supply of property.

'The true test of the market improvement will come in the autumn. The market is heavily dependent on the sentiment of cash buyers, as mortgage-dependent buyers remain relatively thin on the ground,' she added.


See also: London House Prices

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