Property prices were increasing for four months with 1.5% rise in last month that moderated the annual property rate to -14.4%

According to Knight Frank Prime Central London Index, property prices in Central London have increased by 1.5% last month - which was resulted as a 5% jump since April. While London property prices increased for its fourth month, the annual property rate had dropped back to -14.4%.

The increase in property price is lead by the recent market revival in Chelsea and Kensington -both of the areas have now risen by more than 6% since the low reach in March. Despite a fast market recovery rate in Chelsea and Kensington, measure of overseas buyers had also recorded a positive figure. Report showed that the overseas buyers have raised their share by a fifth in this year, leaving the rate of overseas buyers on home purchases increased from 35% to 43%.

Furthermore, houses in Central London outperformed flats - where with house prices in London increased by 1.9% in July, moderated the house prices rate to just 18% below the peak level in March 2008. On the other hand, flats in Central London have only increased by 1% compared to the previous month - leaving the prices standing 21% below the peak levels of March 2008.

Analysts suggested three factors that could have influenced the increasing property prices in Central London: 1) the return of the consumers’ confidence, 2) the increase in the market demand and 3) the decrease in property supply with 34% drop of properties available in Central London in July compared to the previous year.

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