Sterling slide boosts overseas demand for London property

 
Kasmira Jefford
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A WEAKER sterling has helped to boost demand for central London property among European buyers, according to data published today by Knight Frank.

The property consultancy’s monthly report shows property prices in prime central London rose 0.4 per cent in January, as overseas buyers looking for a safe haven for their money continued to drive demand for luxury homes.

Liam Bailey, head of residential research, said the drop in the value of the sterling has also made investing in the UK more attractive.

“While prices for prime central London property increased 0.5 per cent since November currency movements mean that for euro-denominated buyers property values have actually declined by four per cent in that time, making entry into the market more affordable for European buyers,” he said.

Knightsbridge remained the best performing region in terms of price growth, reporting a 1.5 per cent rise during January.

Notting Hill, which has seen prices steadily decline since September, reversed some of these losses with 0.8 per cent price growth in January.

Knight Frank said its outlook for 2013 remained unchanged and it does not expect any significant price movement in the prime central London property market.