Prime suburbs lead London market improvement

The residential market across London is beginning to benefit from stronger trading conditions. Prices are up by nearly 4% in the last three months. But the real pressure in the market can be seen from strong demand and weak supply which is acting to push prices higher.

Knight Frank's research has revealed that it is the so called "prime suburbs" - where demand is picking up more strongly than the more affordable areas of the capital.

Liam Bailey, head of residential research, Knight Frank, commented: “We saw last year that the markets which were hit by the biggest price falls were the prime markets - the markets which traditionally appealed to bankers and City employees. When the economy in London began to contract, it was areas like Fulham and Wandsworth which initially took the hit in prices.

“In the last few months the market reaction has been that this discounting was overdone, and in fact far from the City economy being down and out - the view is that the central London economy will be one of the first parts of Europe to see a sustained recovery.

“Residential markets where central London's high-earners want to live are the first to see recovery in pricing, demand and supply.”

For more information, visit knightfrank.com.