Prime London weathers economic storm

While house prices have tumbled across the UK, they’re holding up in Prime London, Knight Frank research shows.

Annually prices have fallen by 0.2% in prime outer London and 0.9% in prime central London, but in recent months they’ve been relatively flat.

Prime London suffered during the pandemic, as people were prioritising green space, while the market is a very international one.

Tom Bill, head of UK residential research at Knight Frank, said: “London markets have outperformed the rest of the UK over recent months, according to a range of Knight Frank indicators.

“The reason is that prices have been so flat for so long compared to areas of the country that benefitted from a surge in demand for space and greenery during the pandemic, as the charts show.

“Knightsbridge, for example, was an area that suffered disproportionally from international travel restrictions and the fact it is largely a market of flats rather than houses. Prices there rose by 3.3% in the year to July, making it the strongest performing area in prime central London.”

In July 13% more properties changed hands in London than the five-year average, compared to a 5% reduction across the rest of the UK.