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Prices of £1 million-plus houses in central London were up 1.6% in May, four times the rise in April.
Upmarket estate agent Knight Frank says that is a strong sign of a recovery in the market, with Mayfair and Marylebone London's strongest performing locations.
"We have even seen some bankers back in the market after a noticeable absence", it notes.
Houses of less than £1million are up 2.7% since March.
Liam Bailey, head of residential research at Knight Frank, said: "There has been a steadily improving picture in the central London market in recent months with buyers growing in number and deals beginning to shift upwards. There is no question in terms of sales activity the central London market is unrecognisable from where it was six months ago."
The very top end of the market - £10 million-plus - is getting busier.
"Russians that have managed to retain their wealth [are] buying in the best locations as they are keen to place their cash in the UK," claims the estate agent.
Knight Frank confirms the return of gazumping. The so-called sealed bid system - where buyers jostle to snap up properties by guessing what others may be willing to pay and bidding in private - is being used for the first time in 18 months, especially at the top end of the market.
Reader views (7)
House prices rising again? That's inevitable when the government's economic policy is to print tens of billions
Sounds very much like you resent the Government getting it right, Mick. Youer blinkered vision is astonishing.
- Keith Price, Luton, England, 02/06/2009 10:06
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House prices rising again? That's inevitable when the government's economic policy is to print tens of billions, borrow hundreds of billions and then throw it all at the banks and the public sector in an attempt to make the economy grow somehow for the election next year. This ludicrous economic policy was always going to result in yet more inflation, but unfortunately for Labour it can only last a limited amount of time, unless, of course, they are prepared to turn the UK into a banana republic with a 20% interest rate and a 50% inflation rate - which considering their incompetence wouldn't be surprising.
- Mick, London UK, 02/06/2009 09:21
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What a load of rubbish, does this government really think that we are going to believe their spin again. No house prices have not increased, house prices are decreasing because Joe Bloggs cannot afford them, and in fact Joe Bloggs is about to become homeless. As for the very rich in the exclusive part of London, well those people are just a few in comparison to the multitude of Joe Bloggs, who are about to become homeless. Don't get me wrong, I have no objections to people being rich, but greed is something completely different and so is theft AND CORRUPTION.
However I do feel pride in Britain again, not in its corrupt government national and local and their side kicks, but in its people, yes that's right, I feel proud of the Joe Bloggs, for their honesty and dignity and it proves that it is Joe Bloggs that must now stand up for election. So come on Joe Bloggs, stand up to be elected in your local area and help kick out the corrupt self indulgent wimps that are in government today. JOE BLOGGS ONLY, NO CELEBRITIES PLEASE.
- Angel, London, lewisham, 02/06/2009 05:03
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Just goes to show and prove that prime residential property continues to be a very sought after asset anywhere in the world. London is in the top 10 of most desirable locations in the world and as the GBP Pound strengthens, it will take top spot once again.
- Mortgage Broker N3, London, England, 01/06/2009 19:22
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Well done Gordon Brown for bringing the start of economic recovery to Britain as you promised
- Keith Price, Luton, England, 01/06/2009 17:14
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I think we should bomb most of londons houses; this would make the few remaining houses worth ten times there value today; then we could really say house prices are going through the roof again.
With all the unemployed building workers around; why doesn't the government use them to build homes for the homeless?
- Mickyinlondon, london, 01/06/2009 16:20
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This is great news for all those rich Russians hiding their money in the better parts of London.
- Kate, London, 01/06/2009 14:56
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