London continues to post house price gains

Property prices in London are being boosted thanks to the arrival of a rising number of overseas investors, it has been suggested.

Foreign buyers now account for 56 per cent of all purchases in the UK capital, according to the Knight Frank Prime Central London Residential Index for April.

In total, sales rose by 18 per cent on a yearly basis but failed to improve on March's figures, falling 23 per cent compared to the previous month.

However, the cost of buying real estate in London has gone up, with a 1.3 per cent monthly increase during April.

Liam Bailey, head of residential research at Knight Frank, explained that the general election had helped to slow the market and caused people to put off finalising deals.

But the property expert highlighted the successful 13 months that have been experienced, with a steady and constant growth in house values.

"The real bright spot throughout the market has been international demand. These buyers have been taking an ever larger share of the market following the weakening of the pound," Mr Bailey added.

According to the Residential Landlords Association, property prices are expected to rise by a further 1.48 per cent over the next 12 months.

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