High demand for homes in prime central London has pushed property values and rents in the capital to a record high, according to various property price indicies. Central London property prices have been driven higher by uncertainty caused by the sovereign debt crisis in the eurozone, the Arab spring and growing appetite among Asian investors.

The area, which incorporates districts such as Baker Street, Marylebone, Regents Park, Kensington, Knightsbridge, Chelsea, St John’s Wood, Hyde Park and Mayfair, has seen double-digit annual capital appreciation.

In fact, while other parts of the country have enjoyed little growth in recent times, residential property prices in central London have increased by well over 30 per cent since the trough of the market in March 2009.

In spite of significant price rises over the past two years, premier independent estate agents Manors has recorded a recent increase in the number of buyers in the central London market, in anticipation of further capital growth.

A glance at the market in prime central London suggests that a mini boom is occurring, with homes at the high-end of the London property market defying the wider housing market slowdown by proving big sellers.

Residential property prices across some parts of prime central London, in the capital's priciest areas are rising, with some sought-after homes achieving in excess of the asking price.

Demand for homes in prime London is being fuelled by the rise in overseas buyers, while the supply of properties coming onto the market remains low in relation to demand. A housing shortage in the capital coupled with a surge in demand from tenants has also culminated in a hike in rents, with central London rental values currently at an all-time high and rising.

Recent research shows that while some tenants rent for greater flexibility, others are struggling to buy in London due to high property prices and little opportunity to save for a deposit as rents skyrocket.

With rents and property prices in central London widely expected to increase further moving forwards, tenants and prospective purchasers have to be increasingly flexible on the location and standard of property.

With no let up in demand for central London homes, now, more than ever, prospective tenants and homebuyers should ensure they are in a good position to act when the right property becomes available and have all necessary finance in place.

Notes to Editors:

Manors, established in 1975, is widely recognised as one of central London's prime independent estate agents, with an unrivalled residential sales, lettings, property valuation and management service.

For further information, contact Manors by logging on at www.manors.co.uk or call us on 020 7486 5655. All email enquiries should be sent to This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Alternatively, you can visit the head office at 1 Baker Street, W1, located on the corner of Baker Street & Portman Square, moments from Oxford Street.