Plush London homes rise in price as City money returns

The CITY&rsquo;S bankers are beginning to splash out again on prime property, according to the latest survey by estate agent Knight Frank, which reported that prices rose in November by 1.2 per cent.<br /><br />The lift means prime property homes &ndash; situated in the desirable postcodes of Mayfair, St Johns Wood and Kensington and over the &pound;10m price bracket &ndash; have now jumped in price by 11.4 per cent since March.<br /><br />The estate agent said there was a dramatic shift in fortunes at the top end of the market. <br /><br />Knight Frank, head of residential research Liam Bailey, said: &ldquo;City money is becoming more apparent as we get closer to the end of year bonus season; and with the upper end of the market benefitting most, it is clear that demand from senior management is driving the market.&rdquo;<br /><br />Despite prime property prices rising, they are still 15.2 per cent below their March 2008 peak level.<br /><br />But, due to a constricted supply, prime Central London stock levels are currently down by 25 per cent, helping prime home prices stay on an upwards trajectory. Knight Frank believes they will rise by 40 per cent in the next five years.