Prime London property prices rose by 0.7% in July, taking values to a record high. Prime London rents rose by 0.3% in July, taking the increase in the three months to July to 1%. Rents are 1% higher than their previous peak in March 2008
Noel Flint, Head of London Residential at Knight Frank, comments:
"Once again the main reasons for high strength demand in the prime central London market are the overseas purchasers and low stock levels. In the last month our offices have seen more interest from buyers from continental Europe, possibly due to the ongoing Euro-zone crisis as well as London providing a more cosmopolitan lifestyle.
"Middle eastern buyers have, as always, been key to the market, but with an early Ramadan their time spent in London has been shortened, but we do expect to see a second window in early September as they continue their search for a London property while enjoying the cooler climate."
Tim Hyatt, Head of Residential Lettings at Knight Frank, and President of ARLA, comments:
"Rental demand continued to rise in July but stock levels are still constrained in certain areas. Rents have been booted by the high levels of activity in the market as many families look to secure newer property before the start of the new school year in September.
"Like for like deals on this time last year are showing positive growth and we anticipate as ever the summer months being very busy for the London and Home Counties lettings offices."
