Market turmoil hits luxury London house prices

Home prices in the best areas of central London fell by the most since June 2009 in the six months through February as turmoil in financial markets and higher taxes deterred buyers.

The decline in the 15 districts defined as the English capital’s prime areas was 0.6%, according to London-based broker Knight Frank.

In Knightsbridge, home to the Harrods department store, values dropped by 7% in the 12 months to February, while there was a 3.3% fall in South Kensington and a 2% drop in Chelsea.