Housing prices and rental rates in Central London have broken a record

In July 2011 the average price of luxury residential property in the Central London was 9,6% higher than in the similar period of last year. Prices in the rest of the country have decreased in July.

According to Knight Frank company, luxury homes in London increased in price by 0,7%  last month. Also housing rental rates rose by 0,3% and  hit the record.  Nowadays luxury property rent in the Central London is 1% higher than in March 2008, when the latest prices’ peak was recorded.

The largest growth for the six months was recorded in Chelsea (7,7%) and in Mayfair ( 7,2%). But the most significant rise was in Belgavia, where rental rates have increased by 1,8% for the last three months.  

According to Noel Flint, the representative of the Knight Frank Company, high-end property market in the Central London shows such behavior due to foreign buyers and supply deficit.

As Prian.ru reported, analysts of Douglas & Gordon suggest investors to pay attention to other areas of London, f.e. to southwest.  In Q2 0f 2011 property rent increased there by 6,9%, while housing prices grew by 1.7%.

Prian.eu