Latest figures from the Knight Frank Prime Central London Residential Index reveal that prices of the best properties in central London have risen by over 33.3% in the 12 months to the end of May 2007. This is the fastest rate of growth since March 1979 and means that prices in central London are now rising at more than three times the rate seen in the wider UK market.
Once again it has been properties in the "uber-prime" market of Belgravia and Knightsbridge which have led the rise in the market - rising by more than 45% in 12 months. A house worth £100,000 in 1976 would now be worth over £4,200,000. Exceptional London properties are now hitting the £3,000 per sq ft barrier - and several properties have broken the £4,000 per sq ft barrier
Liam Bailey, Head of Residential Research at Knight Frank, comments: "Once again we find another month passes and the rate of London price growth increases yet again. Coming on the back of more than 18 months of very strong price appreciation, the pace of growth has actually quickened over time. In the six months to May 2007 monthly price growth averaged 2.8%, compared to only 1.9% in the same period to May 2006."
