Knight Frank has reported in its Prime Central London Index, June 2011 results, that prices of prime London property rose 0.9% in June 2011, contributing to annual growth of 8.3%.

The company report that prices have risen 34% since their recent post-credit crunch low in March 2009 and are now at a record high, 2% higher than their previous peak in March 2008.

Demand is reported to be holding steady and Knight Frank has revised its forecast for prime central London price growth from 3% up to 9% this year.

Liam Bailey, head of Knight Frank Residential Research, comments: “Price growth in the prime central London market continued through June with a further 0.9% rise in prices. Aside from a brief stumble last autumn, prices have been rising strongly since April 2009, and prices are now 2% higher than their previous peak in March 2008.

“Looking behind the headline numbers for price growth, activity measures are pointing to continued strong conditions in the central London market over the next few months. More tellingly there appears to be a new wave of sales coming through, with the volume of properties going under-offer (sold subject to contract) rising by 52% year on year in June.”