Home values in central London have been defying the downward trend seen across the UK, a new report has found. According to the Knight Frank Prime Index, prices in the capital finished the year 10.3 per cent higher than in December 2009.
The consultant revealed that the strongest performing markets were in Kensington, Knightsbridge and St John's Wood, all of which enjoyed gains of more than three per cent during the final quarter of the year.
Knight Frank added that prices at the end of December were 26 per cent higher than the market low reached in March 2009.
"The central London residential market continues to outpace the weakening UK market. Prices, which were falling in the middle of the year, appear to have turned a corner and have now risen noticeably for two consecutive months," said Liam Bailey, head of residential research at Knight Frank.
Mr Bailey explained that the recent eurozone crisis had played its part in driving demand for property in the UK, with many investors viewing London as a safe haven.