Prime central London house prices rise 20%

Investment demand has picked up in prime central London after recent reports of a property slowdown in the capital.

Newly-released third-quarter Land Registry data, analysed by residential investment experts London Central Portfolio, show quarterly price rises across all sectors.

There was particularly strong annual growth in the flats and maisonettes sector, which represents 87% of all transactions.

The average price for all properties rose almost 11% against the second quarter, and 1.71% year on-year.

House prices increase by 20% compared to the second quarter, although they were around 2% lower than one year ago.

Naomi Heaton, chief executive of London Central Portfolio, said the Q3 revival in London prices was good news for investors, demonstrating the market’s resilience after a challenging year.

"This reflects the fact that some owners are holding back from selling with the prospect of higher prices in the 2016 market."

Heaton said the number of sales dropped 24% year-on-year to 4,839, largely due to a shortage of sellers.

“Many simply wish to retain what they perceive to be a safe haven investment and which is probably their best performing asset.

“This reflects the trend towards greatly reduced transactional activity in prime central London since the global credit squeeze in 2009."