Central London house prices still building

Overseas property buyers continue to flock to the UK capital city to invest in the London property market and it is the level of demand from foreign buyers that is helping to keep prices high.

Up to the minute data from CBRE show that central London property prices are now more than 15 per cent higher than peak levels experienced in 2007 prior to the global credit crisis. First quarter figures show that residential real estate prices in this sector increased by 2.3 per cent giving an average house price in central London or around £820,200.

City agents agree that constant high demand particularly from buyers in South East Asia and the Middle East will continue to drive the market. A high percentage of investors are cash buyers who have no need for home loan finance.

London property agents have yet to notice any impact from the recent changes to the stamp duty charges but many expect higher demand for homes under £2million to avoid paying the higher rate of tax.