Luxury London house prices rise for first time since lockdown

[LONDON] House prices in London's most expensive areas rose for the first time since the height of the coronavirus pandemic as demand started to pick up following the lockdown.

Prices were up by 0.3 per cent in August, the first monthly increase since February, according to a report from broker Knight Frank. Looking ahead, a sales tax break and the lifting of international travel restrictions could give a boost to sales in prime London neighborhoods, particularly those popular with overseas buyers such as Knightsbridge and Mayfair.

UK house sales collapsed after the government effectively froze the market for about six weeks through mid-May as part of its efforts to slow the Covid-19 outbreak. The luxury market has been slow to recover, even as prices for less expensive homes have surged. Prices in the capital's prime areas have fallen by 17 per cent since mid-2015, according to the report on Thursday.

"Such declines are more marked than anywhere else in the UK, which underpins our belief that there is scope for price rises in future years," Tom Bill, head of UK residential research at Knight Frank, said in the report. The broker sees prime central London prices increasing by 4 per cent next year.

High-end sale prices in outer London rose by 0.5 per cent in August, a reflection of growing demand for outdoor space and greenery, according to Knight Frank.

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