Prime London property prices rise again

6th Jun 2012

The price of prime London property continued to rise in May, according to the latest figures, which show values are now at a record high.

Data published by Knight Frank show that prices rose 0.7 per cent in May, contributing to annual growth of 10.7 per cent, with values having risen by 47.3 per cent since their post-credit-crunch low in March 2009.

Values in the sub-£2 million and the £2 million-plus bracket rose 2.7 per cent and 1.6 per cent, respectively, in the two months to the end of May, following the imposition of the new seven per cent £2 million-plus stamp duty rate.

Prices are now at a record high, some 12.1 per cent higher than their previous peak in March 2008, and Liam Bailey, Knight Frank's head of residential research, noted that they are nearly 50 per cent above their post-Lehman low.

"Last October we forecast that 2012 would see an additional five per cent growth in prices. Just five months into the year, we have already seen 4.7 per cent," he added.

"Though there is scope for further growth, for the moment we are leaving our five per cent growth forecast of the whole of 2012 untouched."

Posted by Staff Writer: ADNFCR-1286-ID-801378407-ADNFCR

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