London house price growth fastest for 28 years

International demand and strong bonuses in the City have seen house prices in London grow at their fastest rate in 28 years.

House prices throughout London shot up by 31% in the year up to the end of February. Belgravia, South Kensington and Chelsea experienced the biggest increases.

Researchers at Knight Frank, who carried out the London study, expect the strong house price growth to continue.

Head of residential research Liam Bailey said: “Our forecast that prices in prime central London will grow by 12% this year could well be an underestimate.

“Prices have already moved by 5.6% in the first two months of the year and we expect that the next two or three months will see the strong market conditions remaining, with many potential buyers still waiting for the right property to become available before moving into the market.”

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