In most parts of Prime Central London property prices recovered quickly and dramatically from the lows experienced during the financial crisis of late 2008 and early 2009.
 
Demand has continued to be driven by overseas purchasers taking advantage of the large fall in the value of the pound across a broad basket of foreign currencies. At present many overseas buyers have seen their currencies strengthen so markedly against GB  sterling, that irrespective of the rebound in London property prices, they are still effectively able to buy at prices that are still lower than they were only a few years ago. This has provided overseas buyers with a "once in a lifetime" opportunity to acquire their own stake in an prized asset.    
 
With a bank of England base rate at a record of 0.5%, ultra low borrowing costs over a sustained period have also underpinned domestic demand from UK buyers.
 
Property prices in prime central London increased by just over 5% in 2012 and in the 3 years preceding this they rose by over 40%; prime London prices are now 20% above their previous 2007 peak.

Londons dominance as a worldwide financial centre and its widely recognised "safe haven status" continues to provide a sustained high level of demand. This combined with the ever present restrictions on new housing stock and the finite supply of period homes in central London provides a robust platform for further price gowth.

Renting – London

During 2012 demand for good quality rental properties has continued to exceed supply particularly in the lower to medium price range. This resulted in further upward pressure in asking rents. This rise in demand has continued to be exacerbated by the potential buyers at the lower end of the market being unable to meet lenders very strict criteria. This has forced them into the rental market until their buying position improves.

Meantime landlords are continuing to benefit from the favourable conditions of rising rents and low borrowing costs.