Prime London resi prices up 0.8%

Prime central London house prices rose by 0.8% in June, reaching a new high, but the rate of price growth is beginning to slow.

According to Knight Frank, residential property prices in prime central London have risen 48.4% since their post-credit crunch low in March 2009. Prices are now 13% above their previous peak in March 2008.

The annual growth of residential property prices in prime central London stands at 10.5%.

Liam Bailey, Knight Frank's head of residential research, said: "Over the past few years, international buyers have seen London property as a safe-haven investment in an increasingly volatile global economy.

"While the safe-haven factor continues to support the market, we are beginning to see resistance from buyers to on-going price increases and the difference between asking and achieved prices are beginning to widen [the percentage of the asking price achieved fell from 96% in March to 92% in June].

"In October last year we forecast 5% growth in prices for the whole of 2012. With 5.5% growth already, we do not expect to see a significant additional uplift during the remainder of 2012."