Rents and property values in the prime central London market have hit their highest ever levels, the latest data from Knight Frank has revealed. The firm's Prime Central London Sales and Lettings Indices for July this year show that real estate prices have reached a record high after rising by 0.7 per cent last month, while rents have now surpassed the peak reached in March 2008 by one per cent.
Head of London residential at Knight Frank Noel Flint noted that overseas buyers are continuing to drive the market, while low stock levels coupled with strong demand has helped the upward movement in prices. The rental sector is seeing a similar pattern, with Tim Hyatt, head of residential lettings at the organisation, commenting: "Like-for-like deals on this time last year are showing positive growth."
After a strong first half of 2011, Savills upgraded its forecasts for real estate in prime London regions. The company predicted last month that by the end of this year, prices are expected to be six per cent higher across prime London as a whole, with eight per cent growth anticipated for central districts.