House prices in London jumped 15.2% in the first three months of the year.REUTERS/Suzanne Plunkett
Stockbroker finnCap has predicted that luxury house prices in London could fall by as much as 20% as a result of the Brexit but the latest figures show average home prices in the capital are still roaring higher.
Upmarket estate agent Knight Frank's residential index, which tracks house prices in key cities around the world, shows house prices in London jumped by 15.2% in the first quarter of the year compared to last.
Prices accelerated faster than any other UK city and London saw the third biggest leap of any European city measured by Knight Frank.
While the period measured only goes up to the end of March, well before June's referendum, it shows the fear of a potential vote to leave the European Union didn't dampen price rises. Whether the reality of the vote will slow price rises remains to be seen.
Knight Frank's Kate Everett-Allan writes: "All eyes will now be on the UK’s decision to leave the EU and the impact it has on property markets, not just in the UK.
"Future domestic demand will be linked to the direction of interest rates, changes to mortgage rules, and employment growth, whilst currency shifts will be the key determinant of cross-border investment."
Check out Knight Frank's charts and visualisations of price rises:
