Prime London prices up by more than two thirds in past five years

Kasmira Jefford
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PRIME central London prices have risen by more than two-thirds since their post-Lehman Brothers low, according to new research that looks at how recent political events, as well as economics, have affected prices.

According to Knight Frank’s central London index out today, prices have risen 68 per cent since the bottom of the market in March 2009, as London property’s reputation as a safe investment has grown.

The property firm highlights how more recent domestic political events have influenced prices, with the stamp duty changes brought in by the government contributing to slower price growth in some core prime London markets. While prices rose by 0.8 per cent in March, the annual growth rate has slowed to 7.5 per cent from 8.1 per cent in March last year and 11.3 per cent two years ago.

Meanwhile political tension between Russia and Ukraine has sparked a rise in Russians looking for prime London homes.

Online searches rose by two per cent in February, after declining in the 11 months to January by an average of 25 per cent.