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A spring rise in London's house prices began in prime south-west areas, figures suggest today.
The bounce is said to be reverberating around the capital, offering hope that the market is stabilising.
The average house price in the capital rose by 4.8 per cent from April to June thanks to overseas demand, record low interest rates and renewed confidence of first-time buyers, according to the latest information from Nationwide.
Estate agency Savills said price rises varied across London, with the recovery spreading through boroughs and trickling down from the prime market to cheaper properties.
Its agents say family properties in Wandsworth and Clapham are leading the revival. Savills said prices in the two boroughs, and in Wimbledon, Fulham, Putney and Richmond, rose by 6.4 per cent in the three months to June, wiping out first quarter falls. This moved into Kensington, Holland Park and Notting Hill, Savills said, with prime prices up 5.9 per cent on the first quarter. Next to feel the lift were Mayfair, Belgravia and Knightsbridge, with a 4.1 per cent rise in the last three months.
East London is yet to show signs of recovery, with property in Wapping, St Katharine's Dock and Limehouse still falling 1.4 per cent.
Lucian Cook, Savills director of research, said: "The south-west has been quick to react to changing sentiment. There are plenty of other well-off families there to step into bankers' shoes and snap up bargains.
"The City is some way from recovery because it is awash with stock and those buying there tend to be young."
Reader views (4)
This presumably means that families, as always, are the most oppressed.
- Roz, France
I've actually seen houses sold at prices from the peak of 2yrs ago, but they are few and far between. With prices still way above what most people can borrow, with the more prudent bank policies coming in, the market can not rise. It will take a new wave of bankruptcies or unemployment to drive people to sell though.
- Mark, London
Beware the industry spin - and I bet its a great time to buy as well.
- Bob H, Streatham
These reports are becoming farcical.Everyone knows that estate agents reported house prices are not the actual sale price achieved. These are reported at the Land Registry and paint quite a different picture.
Even putting aside the propoganda put forward by the esate agents everyone knows that the credit crunch has all but wipped out buyers ability to buy property.
- Sam, London
