Friday 5 March 2021 12:00 am

Prime outer London house prices boom as demand for extra space continues to rise

House prices in prime outer London boroughs boomed last month as demand for more space has driven suburban property markets in the capital.

In the year to February there were 1.1 per cent more transactions in prime outer London than over the previous 12-month period, underlying the strength of activity given the UK property market was closed for eight weeks last year.

Read more: House prices rebound unexpectedly in February on hopes of stamp duty extension

Prime outer London areas Belsize Park, Dulwich and Wimbledon have all seen house prices grow four per cent since April last year.

However prices declined 4.4 per cent in prime central London areas last month, according to the latest data from estate agent chain Knight Frank.

The firm said the drop in international tourists and students had affected inner London house prices.

Transactions fell 20 per cent in the year to February.

“The prime central London property market has been in a holding pattern since travel restrictions were tightened,” said Tom Bill, head of UK residential research at Knight Frank. “A gap is opening up between price growth in central and outer areas of the capital but that will close as international buyers can get back on aeroplanes.”