| Central London residential property prices rose by | | | | immediately after returning home. However, |
| 3.9% in July 2007, the highest jump in a single | | | | because of substantial rises, such as the 36% |
| month for 31 years, according to the Knight Frank | | | | recorded over the last year, property is |
| Prime Central Location index. Lack of supply of | | | | increasingly being retained as an investment once |
| suitable properties is considered the reason for | | | | the buyer returns home. This has helped fuel the |
| the continued rise in residential prices throughout | | | | property shortage and in turn keeps central |
| central London, with rises in house prices | | | | London property values high. |
| consistently outperforming gains in flat prices | | | | In 2004 the average period that a foreign buyer |
| month on month since January. | | | | would hold onto their property after returning |
| July's figures give an annualised growth of 36.4% | | | | home before selling it, was nine months. Last year |
| - the highest annual growth since 1979 - and now | | | | that period had risen to 20 months and is still |
| the reasons for the lack of supply driving the | | | | rising. It appears that rather than take a quick |
| outstanding price increases are coming under the | | | | profit on their London property foreign landlords |
| microscope. It appears that foreign buyers have a | | | | are now willing to reap an income from tenants |
| large part to play, as 61% of all property over | | | | while watching the capital value of their property |
| £4 million for sale in prime central London is | | | | investment surge. |
| sold to foreign buyers who, unlike domestic | | | | Of course, foreign buyers cannot take all the |
| buyers tend not to have another property to | | | | blame - or credit - depending upon your point of |
| release back into the market, thus restricting | | | | view, as for the substantial and sustained |
| supply even further. | | | | increases in property prices in central London |
| The substantial rise in property prices has also led | | | | multi-million City bonuses have been swiftly |
| to a shift in the behaviour of foreign buyers who | | | | invested in prime central London property, which |
| initially buy their property for occupation while | | | | is still seen as the most solid of investments. So, |
| working in the City. In the past many would arrive | | | | unless foreign buyers and city brokers decide to |
| to undertake a prestige job in the City and | | | | liquidate their investments the outlook for central |
| purchase a property solely for occupation while | | | | London property seems bright indeed. |
| they were in the country and sell the property | | | | |