London price rises at 28 year high

Posted: 16 Mar 2007 09:59:32 GMT

House prices at the top end of London's housing ladder are climbing at the fastest pace in 28 years, research for Knight Frank has shown

House prices at the top end of London's housing ladder are climbing at the fastest pace in 28 years, research for Knight Frank has shown.

Prices for some of the capital's most desirable properties have increased by an extraordinary 31 per cent in the past 12 months.

"Our forecast that prices in prime central London will grow by 12 per cent this year could well be an underestimate," said Liam Bailey of Knight Frank.

"Prices have already risen by 5.6 per cent in the first two months of the year and we expect that the next two to three months will see the strong conditions remaining."

The company said that continued shortages and high demand were leading to the increases, with City workers flush with bonuses and foreign investors spending heavily.

Belgravia, South Kensington and Chelsea have seen the strongest growth, said Knight Frank.

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