London leads luxury houses for sale in UK

Photo credit: Steve Cadman

When it comes to luxury houses for sale, UK house prices are
being led by London.

Prices for prime property in London have grown by 36 per
cent in the last two years, according to reports from Knight Frank.

The estate agent confirmed in its latest sector index that
London’s prime central market saw a 0.9 per rise in August. Property prices in
the centre of the capital have been rising for several years, despite wider
financial concerns across the country.

A rich man’s world

Knight Frank confirms that over the last 12 months, houses
and apartments with a price tag of £3.7 million rose by 10.5 per cent – a hefty
increase that almost
matches the rise of 11.2 per cent from last November.

The increasing prices have now seen London costs surpass the
peak of March 2008, with properties almost 4 per cent higher in 2011.

Foreigners no stranger to demand

The rise in prices has mostly been attributed to the
interest of foreign investors, who are seeking a safe haven for investment in
an uncertain global economy. Supply has increased by 13 per cent over the past
year, but demand has equalled it, rising by 15 per cent since 2010.

Knight Frank told Property
Wire that they expect the prices to rise go up even further before the year
is out: “Barring any reversal, with an uplift of almost 11% since the start of
the year, there is a potential for a significant double digit growth rate by the year end.”

The message is clear: when it comes to luxury houses for
sale, UK industry hopes lie on London’s prime property.