Price Growth Slowing in Central London

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After a historic, recession-defying run-up, price hikes in the prime Central London homes are slowing.

Prices in London's most expensive neighborhoods rose 0.6 percent in October and are up 6.8 percent from a year earlier, but the rate of price growth continues to slow, according to Knight Frank data.

The 6.8 percent is the slowest annual growth since 2009. Last October prices were up 10.1 percent from the previous year.

"In spite of new record prices we are seeing a moderation in price growth across prime central London following very strong performance over recent years," said Liam Bailey, global head of residential research for Knight Frank.

Prices for homes actually fell slightly in Hyde Park and South Bank, and was unchanged in such high profile neighborhoods as St. John's Wood, Chelsea and Kensington.

"There are signs that buyers in certain prime central London markets are becoming more resistant to ongoing price growth," Knight Frank said.

Sales of sub £2 million properties are 7.6 percent higher in 2013, compared to last year. A higher stamp duty charge for homes priced over £2 million "remains a key driver behind stronger growth in the sub-£2m market," Knight Frank reports.