Knight Frank says best London property thriving despite dip

Ben Southwood
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PRIME property in central London hit a new record high in September, according to estate agent Knight Frank, as it continued its robust recovery from the post-financial crisis slump.

Prices grew 10 per cent in the last 12 months, the firm said today, pushing the index to a point some 51 per cent higher than its March 2009 low – and a full 15 per cent above its previous all-time high.

Prices grew despite the rise in the top rate of stamp duty and despite reforms affecting the imposition of capital gains tax and stamp duty on non-residents, the estate agent said.

These changes hit the high end of the market hardest, Knight Frank says – 20 per cent fewer houses have sold for £2m to £5m in the past three months compared to the same period last year.

But the very highest end of the market has been practically impervious to these changes, the data shows, and sales below this range have shot up too.

Twenty-three per cent more houses worth under £2m were sold in the last three months, compared to the same period last year, while prices dashed up 11.6 per cent over the period.