Sales prices in prime Central London rose 3.8% in Q4 2009, with the annual rate of growth this year standing at 7.7%.

Research from Cluttons, found that sales prices in prime Central London rose 3.8% in Q4 2009, with the annual rate of growth this year standing at 7.7%. Having fallen to -20.6% below peak levels in Q1 this year, prices have now rebounded to -12.8% below their Q3 2007 peak.

James Hyman, Partner for Cluttons Residential Sales, comments: “The Central London sales market has performed well this year, with significant price uplift in the past three months driven by limited supply.

However, this may well reverse in the New Year as people who have held off selling over the past year or so are encouraged to come to market by rising prices, which could in turn bring about a second dip in property values.”