Country houses for sale

Russian demand pushes London prices up

House prices in central London rose by 1.4% in May, the 14th consecutive monthly rise, putting them 23% higher than they were at the low point in March last year.

Liam Bailey, Head of Knight Frank Residential Research, said the weak pound is continuing to pull in overseas buyers who view London as offering good value, with prices still 34% lower in dollar terms from the 2008 peak.

‘House price growth in Chelsea, Kensington, Notting Hill and Knightsbridge has led the market over the past 12 months, but now Mayfair, Kensington and Knightsbridge are rising strongly – with price growth of 14% across these locations over the past six months,’ said Mr Bailey.

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Russian buyers have also been even more visible than usual, the report states – in fact all overseas buyers remained unaffected by the political upheaval and have continue to represent the most confident and proactive buyers in the market.

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‘There is growing evidence in the wider UK market that residential sales volumes and even prices are coming under pressure. London will not escape entirely over the next few months, however the impact of strong and resilient demand from overseas will support the market,’ Mr Bailey concluded.

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