Prime residential property prices in central London have risen for the fifth month in a row and transactions are now up +90% compared with January 2008, according to Knight Frank.

The research also showed that houses continue to outperform flats with three month
price growth up by +4.6% and +3.6% respectively. The prime property recovery is being led by Chelsea and Kensington. In August, prices increased by +1% which means that prices are now +6.4% higher than they were in March which was the low point in the recent real estate market cycle.

Liam Bailey, head of residential research at Knight Frank, said: “The combination of rising prices and increasing confidence in the central London market has had a dramatic impact on the number of sales which have taken place.”
Since the market began improving in April, it has been the lower end of the market which has led the recovery, the index shows. Prices in the £1m to £2.5m market have risen more than +5% in the last three months compared to only 2.4% for the £10m plus market.