While several residential market analysts have confirmed that prime central London properties have risen in value during June, Prime Purchase comment that the annual rate of growth remains negative and that last month's growth rate was quite modest.

Nathalie Hirst of Prime Purchase London says: “We now have an increasing number of international buyers registered and seeking investment property in the £2 million to £5 million price range as well as those seeking higher value houses and flats as London homes. These buyers are undoubtedly helping to strengthen confidence”.

Of the prime areas, Prime Purchase has noted that properties in Belgravia, Chelsea, South Kensington and Mayfair are the most sought after at present and that prices in these areas are firmer with some deals being done. The demand for good quality family houses, especially in Kensington and Chelsea, is strong but supply still remains a concern. Lack of supply is helping to strengthen the market in these areas.

Guy Meacock of Prime Purchase comments: “The market seems to be recovering slightly from a dramatic fall-off some 18-months ago. When we commented on the prime London market in May this year we saw good value for those who could move fast and secure deals. This value is still there although we are relying more on good market intelligence and hard work to seek out deals for our clients and to exploit opportunities”.

Prime Purchase still say that lack of stock is a key factor affecting the prime London market and estimate that the supply of the quality properties of the type their buyers require is down 40 per cent on last year. And they still remain concerned about uncertainty in the UK economy in terms of interest rate rises, inflation and unemployment.

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FOR FURTHER INFORMATION PLEASE CONTACT Nathalie Hirst, Head of Prime Purchase London: 020 7881 2388 nhirst@prime-purchase.com Guy Meacock, Prime Purchase, London: 0207 881 2392 gmeacock@prime-purchase.com John Vaughan Public Relations: 07596 106937 jvaughan@johnvaughan.co.uk