London property prices shooting up through tight supply

Knight Frank’s Prime Central London Index ,Bucking the inclination for larger part of the UK, says recent rise has led to annual growth of 10.3 %  in the 12 months to January.

Rates are now 26.9 %  more than March 2009 and just 3.4 % under their unsurpassed peak reached in March 2008.

Head of residential research at Knight Frank, Liam Bailey, said: “Demand for property has been sturdy, candidate volumes were 13 % higher in the 3 months to January as compared to the similar period last year.

“The actual drivers of this rise have been overseas buyers, particularly Europeans, and also  buyers based in the city, who have been more abundant than expected given the doubtful discussions over bonus levels.

“A marker of the strength of the London market is shown by the fact that viewing volumes are up by 30 per cent year-on-year in January”.

“On the supply side, the  subject of tight supply stays, while the stock volumes are running at 3% above the level seen last year, they are still down by over 20 % compared to January 2009”.

 

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