London property prices bolstered by overseas investment

Property prices in central London are being pushed up because of the arrival of foreign investors, a new report has suggested.

According to the latest Central London Residential Index from Knight Frank, house values in the capital increased by 1.4 per cent in May.

Property investors in the UK may be interested to learn that the regions which are leading the way in terms of growth over the last year are Chelsea, Kensington, Notting Hill and Knightsbridge.

Furthermore, the emergence of overseas real estate buyers soared by 112 per cent over the last two months, with the weak GBP attracting many who see London as offering good value.

Elena Norton, head of Knight Frank's Russia and CIS desk, explained that interest from abroad was growing thanks to recent troubles in other eurozone destinations.

"The ongoing recovery in prime London prices has also created additional interest in London as buyers now believe that the market is likely to continue to strengthen," she added.

According to the Royal Institution of Chartered Surveyors, the number of new builds in the country is at its highest level since the second quarter of 2008.

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