News: Prime London house prices 16.5% above 2008 peak, says agent Knight Frank

Tue, 29 Jan 13


Prime London house prices are now 16.5 per cent above the 2008 market peak, according to Knight Frank.

The firm’s latest market review shows that house prices in the prime central areas of the UK capital have risen 53 per cent in the last three years, a growth that is only outperformed by Hong Kong, Jakarta and Beijing.

Prime central London rents, on the other hand, declined in the second half of 2012, marking a 3.2 per cent fall compared to the same period in 2011.

Knight Frank rented propertied to tenants from 77 different countries last year, with international rents accounting for 66 per cent of all prime lets. The main international buyers in the last three years have been from Russia, India, the USA, Italy and France.

Liam Bailey, Global Head of Residential Research, comments: 'London’s relatively healthy rate of price growth compares with a somewhat anaemic -1.4% for New York, -4% for Paris and -6% for Geneva.

'Over the last two years the proportion of £1m+ sales in London to non-UK buyers was 51%, rising to 60% for properties priced above £5m.

'Overseas buyers are also key in the ‘new-build’ market, as we examine in more depth here.

'Our map of local London markets confirms that the worlds wealthy are still drawn to London over the many global city alternatives, although some areas are more popular than others when it comes to attracting overseas buyers.'

See also: Central London House Prices

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