New Trend Developing in London Home Sales

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For the past three years London home sales were headlined by historic price increases in the city's most expensive neighborhoods. But now it's the less expensive areas driving sales.

Property prices in the greater London area are 8.1 percent higher than a year ago, while prime central London prices are only up 7 percent, according to a report released today by Knight Frank.

Prime central London property prices are still up 4.8 percent for the year and stand more than 60 percent higher than the market low in March 2009.

But most of the increases are in the relatively modest sub-£1 million and £1 million-£2.5 million price bracket, which are up 8.7 percent and 7 percent year-to-date, respectively. Prices in the £5 million to £10 million range have only increased 2.6 percent in 2013.

Prices are still rising, "but there are indications that buyers are becoming more resistant to continued price rises, especially at the top of the market," Knight Frank concludes.

Throughout London, interest remains high, the consultancy says. The number of new applicants is up by 33.9 percent from a year ago and viewings are 18.5 percent higher, Knight Frank reports.

Meanwhile rents in prime central London are down 2.5 percent so far this year.