Residential properties in London surged by 20% over the past 12 months, with prices growing at their fastest rate since March 2008 a new data showed.
Properties in the lower to middle end segment led the charge, jumping by 24% for properties under £2.5m mark. These current prices are now just 9% lower than the peak recorded in March 2008 according to Knight Frank.
Liam Bailey, head of residential research, Knight Frank said the central London market has enjoyed boom-like conditions in recent months, at least in terms of prices.
"This growth has not been evenly spread, and it has been the low to mid end of the market, especially sub-£2.5m, which has seen the strongest growth (23%). The more expensive price brackets have lagged (17% for the £5m+ sector), reflecting the fact that the recovery in pricing started later in this part of the market," he said.
Bailey noted that the rapid growth in London's pricing, reflects not only the stimulus given to the market from low interest rates and the weak pound - which have driven domestic and international demand - but also to very thin supply over the year, set against very healthy interest from buyers.
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