“Rising global stock prices are having a material effect on London house prices. The massive increase in corporate equity values appears to have galvanised banks to reactivate their presence in London, generating increased interest in and competition for properties over £3mn. In some cases, values in Knightsbridge are higher now than in 2007.
“Whether or not this interest will be sustained depends on several factors, including continued recovery in global equity markets.
“Another key factor is the continuing foreign interest in prime London property, much of which has been driven by the low value of the UK pound in relation to other currencies and historically low interest rates which makes prime London property good value against other asset classes. It is also a tangible and versatile asset.”