A recent report by Knight Frank on London’s residential property market reported that sales volumes had increased by +90% since the start of the year with prime central London property rising by +6.4% since March 2009.

This has helped to raise confidence in this sector of the property market after 18 months of particularly terrible market conditions. The report also points out that as the recovery is starting from a very low base the industry should not be complacent.

However with the low numbers of properties actually available, demand still exceeds supply ‘ the key factors are low volumes of available property, which at the beginning of September were already -34% below the level seen at the same time last year ’, according to the report.

Despite the increased sales volumes, prices for London’s prime properties are still someway short of the prices they achieved at the peak of the market, indicating that they have some way to go before they reach that again. The report said: ‘ Average prices for London’s best properties are still -19% below the level they hit in March 2008.’