Prime London house prices now 55% above 2009 market low

The average price of prime central London property increased by 0.9% in February, the highest rate in ten months. According to Knight Frank’s latest PCL Sales Index, prices have been rising every month since November 2010 and now stand 55% above the March 2009 market low.

Prime central London average residential price change
Prime central London average residential price change (Knight Frank)

The lower end of the market continues to be the strongest performer, with prices in the £1m-£2.5m bracket increasing by 1.7% on a monthly basis in February and showing a rise of 2.1% over the last three months. Things seem a bit more sedate in the £10m+ market though, with a 0.1% increase in prices recorded in February (a 1.6% rise in the past three months).

The fall in the value of sterling still looks to be a key factor; figures from Knight Frank’s Global Property Search website confirm there was a 16% monthly rise in euro-denominated buyers looking at prime central London property in January.

Liam Bailey, Global Head of Residential Research at Knight Frank: “In France and Italy, where concerns over the introduction of wealth taxes and political uncertainty form the wider economic backdrop, searches increased by 33% and 36% respectively over the course of the month. Further afield, searches from Chinese and the US also climbed by 35% and 53% respectively.”

Read the full report here