High-end London property remains popular with foreign nationals
The top end of the London property market is being supported by interest from outside the UK, a new report has revealed.
According to Knight Frank, the super-prime market in the capital has continued to do well in recent months, despite Britain's continuing economic difficulties.
Indeed, figures showed that the value of homes worth £10 million or more went up by 1.8 per cent during the three months to August 2012. This means that house prices at the end of August were 9.4 per cent higher than they had been a year earlier.
This has come about partly because London is attracting lots of interest from people living in other countries.
Statistics indicated that more than two-thirds of those who have purchased super-prime property in the capital over the last two years have hailed from overseas.
"London [is] still able to attract foreign wealth through lifestyle, security, stability and educational factors," said Liam Bailey, global head of residential research at Knight Frank.
However, the rate of growth in the super-prime property market in the city does seem to be slowing down.
Knight Frank said the sales of homes worth £10 million or more reached record levels last year, but did not say it expects to see a similar milestone achieved in 2012. The performance of the market during the first half of the year was described as "solid", while zero per cent growth is expected in 2013.
However, an upturn is tipped to occur during the following year, which suggests foreign investors will continue to transfer money to the UK in the near future.
Knight Frank said London currently has a more "diverse range of nationalities" purchasing property than any other major global city in the world.
Nevertheless, the group added that many wealth advisers including lawyers and tax accountants believe New York poses strong competition "when it comes to super-prime property".