Prime property prices in London hit five year high

The price of prime central London property is growing at its fastest rate for five years, according to one leading estate agent.

Knight Frank reports that prime property prices in central London rose almost 15 per cent year-on-year in April, the 16th consecutive monthly rise and the highest jump for five years.

Liam Bailey, head of residential research at Knight Frank, said that the boom was actually getting even “stronger”, citing a number of factors behind the trend.

In particular the firm pointed to the widening demand and supply imbalance, with supply down by 21 per cent and demand up 43 per cent over the year. This was creating price increases judged to be unsustainable.

The report attributed the trend to a high level of investor ownership, where buyers do not sell their old home when purchasing a second, as well as an increase in the number of overseas buyers.

Mr Bailey said that “prices have never experienced growth of less than one per cent per month” since October 2005, while someone looking to move into a pad in Chelsea now needs to find an additional £14,978 every month.

The prime property market includes houses worth over £3 million and penthouses or apartments costing in excess of £1.5 million.

© Adfero Ltd

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