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Luxury London House Prices Rise by 31%

Luxury-home prices in London, the world’s most expensive city, rose at an annual rate of 31 percent in February, the fastest pace in 28 years.

The average price of London’s most expensive houses and apartments gained 2.6 percent on a monthly basis, according to data compiled by Knight Frank, a real estate broker based in the U.K. capital. In January, the gain was 3 percent.

This is the fastest annual growth since 1979, when Margaret Thatcher was prime minister and oil money was flowing into the UK capital from Iran and the Gulf.

Knight Frank’s head of research, Liam Bailey, said the agent might have to revise up its forecast for the year.

“Our forecast that prices in prime central London will grow by 12% this year could well be an underestimate,” said Mr Bailey.

“Prices have already moved higher by 5.6% in the first two months of the year, and we expect that the next two to 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,” he added.

The Knight Frank research covers the most expensive areas of south-west London, including Belgravia and Kensington and Chelsea, as well as the borough of Camden in north London.

These areas have seen prices rise on the back of record City bonuses, worth an estimated £19bn to London workers.

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