European wealthy move back into £10m property
Prices of London homes worth £10m and more, last month rose for the first time since the recession began, as European buyers urgently seek to buy London property while the local currency is still relatively cheap.
For the first time since April 2008, prices rose 1.9% in June for London's most expensive property sector, which includes areas like Mayfair, Knightsbridge and Chelsea.
Overall prime London property gained an average of 3.7% between April and June, the strongest rate of three-monthly growth since September 2007.
However on an annual basis prices are still on average 17.2% lower than they were last year, according to estate agent Knight Frank in its monthly prime central London report.
Viewing volumes are up by 7% over the last month, suggesting the price rise may continue.
The agent said prices are on the rise because of the lack of supply, with 29.2% fewer properties available in June this year compared to a year earlier.
The number of new applicants looking to buy property has grown by 14% on a year-on-year basis, as the wealthy seek a hedge to protect their assets.
Liam Bailey, head of residential research at Knight Frank, said: "This is a significant shift in the market as the rises seen over the past two months had been led by the sub-£1m and the £1-2m sectors. We have noted growing confidence from the wealthiest buyers in recent months - in terms of viewings and offers and this has now translated into actual sales."
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