The city of London continues to be a rabbit in the property market race of choice.  Recently released research by Knight Frank indicates prices in the prime central London market are up almost 10% over the past year.  The prices currently stand at more than a third higher than the post crisis low in early 2009.  The capital city is seemingly its own property entity, completely independent of any economic influence from the rest of the UK.

The London rental market is also booming.  Rents are now 15% higher than the same time last year and 1% higher than their highest in March 2008.

The contrast with the rest of the UK seems unreal.  Nationwide recently posted figures which showed prices unchanged month on month in June and down more than 1% compared with the same time last year.  London was the only area to experience an increase in prices.

Historically speaking, London has consistently displayed more positive property market figures, but today’s London is owned by a more global group of investors.  Over the past year, 50% of sales of properties greater than 2 million pounds have been to a non UK buyer.  A more impressive 65% of sales for property valued at 5 million pounds plus has been also to a non UK buyer.

The non UK buyers originate from Russia, which boasts the highest percentage of buyers.  Not far behind stand buyers from the Far East.

Growth of the London market stands to continue, as a large housing complex is currently in the works which could rival One Hyde Park as one of the capital city’s most decadent.