International buyers boosting property market
Foreign property buyers are continuing to look for opportunities in the heart of London, a new report has revealed.
According to figures from Knight Frank, the value of prime central London property went up by 0.5 per cent last month.
This, it said, was driven partly by continued interest in the market from international purchasers.
London was said to be particularly popular with buyers from Russia, while healthy interest from India, France and Italy was also reported.
However, Knight Frank raised questions over whether foreign nationals will continue to transfer money to the UK at such a strong rate over the coming months.
"The critical issue for prime London property over the remainder of this year will be the willingness of international buyers to continue looking to place their equity in this market," it commented.
Knight Frank said future developments in the eurozone will be critical, as demand for property in London has gone up whenever the "crisis has threatened to turn to catastrophe".
The organisation has predicted that while the market will not see a significant increase in prices between now and the end of the year, interest among foreign buyers should "help to maintain demand and liquidity".
Figures from Knight Frank show prime central London property values in August 2012 were 9.9 per cent higher than they had been a year earlier.
This means prices are nearly 50 per cent up on the amount recorded when the market hit a trough in March 2009 following the credit crunch.
Statistics also indicated prices are 14 per cent higher than they were when the sector peaked in March 2008, which means they are now at an all-time high.
Knightsbridge was said to be performing particularly well, while property values are also heading up at a significant rate in Notting Hill and Belgravia.