Recent figures from Savills shows there’s a decline in the quarterly rate of residential growth in Prime Central London which now stands at 5.7%, down from 8.8%, in Q1 2007.

Growth in the South West area which includes Barnes, Fulham, Putney, Richmond and Wandsworth outperformed Prime Central London in the quarter, which reflects equity filtering out of more central areas. Quarterly growth in this area increased to 8.1% putting annual growth to the end of June at 31%.

Lucian Cook, director at Savills Residential Research, said: “The fall in growth rates in Prime Central London does not mean the house price boom has ended in these areas. While the number of new applicants per property has reduced since February, the figure remains high in a historical context and there remains sufficient pent up demand to continue to drive further growth, irrespective of an easing in the supply/demand imbalance.
“As a result we continue to believe that the second half of the year will see growth levels above and beyond the mainstream market. Whilst growth is set to be lower in the second half of the year, there remains the prospect of a small uplift over and above our 20% forecast for Prime Central London.”