According to London estate agent, Kinleigh Folkard and Hayward (KFH), the London residential market saw in April a + 20% increase in buyer registrations, with first-time buyers accounting for 45% of new registrations.

In addition, sales have increased by 30% compared with 2008. Demand and short supply of new property for sale puts upward pressure on prices, and KFH predicts a +5-10% increase in selling prices over the next six months.

Lee Watts, managing director of KFH, said: “During Q1 2009, we have witnessed the first positive signs of a stabilising and improving London property market. Although sales agreed were still -20% less than the same period in 2008, they are the best results recorded for over 12 months.

“In London, selling prices bottomed out at the end of the last year, falling on average by -25-30 % from their peak in mid 2007. I believe we will see actual selling prices increase between +5-10% over the next six months. This will release many home owners from negative equity, increase the level of new properties coming to the market and ease the present imbalance between supply and demand.”