Prime London home prices race up again
HOUSE prices in London's most sought-after areas posted the biggest rise for 10 months in March, in a sign that the top end of the property market has started the key spring period in buoyant mood.
Estate agent Knight Frank said prices in the prime central London market - from Kensington in the west to Canary Wharf in the east - rose by 0.8% during the month, the biggest increase since last May. Prices were 0.9% higher than a year earlier.
While prices across the capital are in decline, million-pound-plus properties in smart areas are being bolstered by a chronic lack of supply. Buyers also tend to be high net worth individuals who are less reliant on mortgage finance and less sensitive to rising interest rates.
Liam Bailey, head of residential research at Knight Frank, said: 'The £5m-plus band has seen particularly strong demand, stemming as much from domestic buyers as from foreign interest. Affluent young buyers from the former Soviet Union have been evident in the St John's Wood market.'
Less busy, but still healthy, has been the £1m-to-£2.5m market. In stark contrast, areas dominated by modern developments, such as Canary Wharf and Wapping, are blighted by oversupply and falling prices.
The lettings market, meanwhile, continued to recover with rents up 0.7% in March - the biggest increase for six months. Knight Frank said lettings in Notting Hill, Kensington and Canary Wharf were boosted by strong corporate demand.
