Property prices still rising in London

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by Kay Murchie

According to a study by Knight Frank, the London Estate Agent, property prices in the capital are still exceeding record growth with increases being driven by price inflation at the top of the property market.

A spokesperson for Knight Frank said that price growth in central London is expected to stabilise at 25% by the end of 2007. A figure that is well in front of annual inflation across the rest of the UK, which is currently around 10%.

In June, a 3.1% rise was reported in prime central London, together with an annualised rate now at 34.5%. These figures represent the highest level of growth for over 30 years with houses worth £4 million or more reporting even stronger annual growth of 43%.

In comparison, properties worth less than £1 million rose by 1.6% in June, analysts believe these are the indications of a slight slowdown.