Prime Central London residential property prices rise

Price growth has been led by the very top end of the market – £10million plus properties saw growth of 1.9% during November – the strongest result for all price brackets.

The weakest market was the sub-£1million market which saw only 0.5% growth.

Locations seeing the strongest growth are Chelsea, Kensington and Knightsbridge.

Liam Bailey, head of residential research, Knight Frank, said: "It is becoming clearer that it is the very top-end of the market that is leading price growth.

"Anecdotal evidence from across our offices suggests that City money is becoming more apparent as we get closer to the end of year bonus season; and with the upper end of the market benefiting most, it is clear that demand from senior management is driving the market.

"The change in fortunes of the top-end of the market has been dramatic. Whereas prices in the overall prime central London market stopped falling in March, they only stopped falling in the £10million plus price bracket in May, and even then growth has been anaemic at best in this sector until recently.

"There has been a definite shift in the performance of the top-end of the market in recent months. Since the wider market started rising in the spring, the main prime London index has risen by 11.4%, but the £10million plus sector has only risen by 6.6%, and most of this has occurred in the last two months (nearly 4%).

"This rise in prices at the top-end of the market has been reflected by significant new activity in the £20million and £30million sector; deals at this level were taking place on a monthly basis prior to September – since then they have been almost weekly events."

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