The latest Prime Central London market review by LCP has found that house prices in the best areas of the capital are continuing to rise, albeit based on a very low volume of sales.

Andrew Weir, CEO at LCP, commented: “Prime Central London (PCL) house values have continued to show growth in the latest data with the average cost of houses reaching £3,780,397 which saw 2.9% growth in the year to October and stands at levels seen in the peak of 2015.

“However, at just 12 sales a week on average this is a low volume market. Houses in PCL have historically proved resilient in times of inflation and interest rate rises as wealthier buyers tend to have discretionary leverage. However, it has been widely predicted that house price growth in PCL is expected to fall in 2023 as international buyers become unnerved by the rapidly changing global macro-economic environment.

“The apartment market has continued to lag behind that of houses with the average price of flats at £1,124,631 still 8.3% below the 2015 peak. The rolling 12-month transaction volumes to July 2022 has been one of the lowest recorded at 2,508, less than 50 sales a week on average.”