Prime central London property prices increased in June and are almost 60 percent higher than the market low in 2009, according to real-estate broker Knight Frank LLP.
Residential prices rose by 0.4 percent this month and have appreciated 3.7 percent so far in 2013, according to data compiled by the London-based firm. The strongest price growth is in the bracket below 1 million pounds ($1.5 million), where prices are up by 6.6 percent in 2013.
The market for luxury homes in London is cooling at a time when prices for less-expensive properties are picking up, helped by a credit-boosting program by the Bank of England and the U.K. Treasury. While demand for prime real estate remains strong, higher taxes in that segment have been relatively beneficial for lower-priced property, Knight Frank said.
“The higher stamp duty charge for two-million-pound-plus properties, introduced at last year’s budget, remains a key driver behind stronger growth from the lower price brackets,” Liam Bailey, global head of residential research at Knight Frank, said in the report.
Over the past 12 months, price growth in prime central London has totalled 6.9 percent. Prime central London rents fell by 0.1 percent in June and 0.4 percent in the first half. They stand 22 percent higher than in the second quarter of 2009.