Frank Knight has recently published their London Residential review 2009, which looks into the current trends in the London property market.

On the sales side there has been a marked improvement since the turn of the year. Prices fell in the first four months of the year, but at a much reduced pace. Like-for-like sales volume are higher compared with the dark months at the end of 2008. The growing problem in the sales market is a lack of stock.

The lettings market is experiencing the opposite problem - too much stock has acted to push rents down. However, sharply lower capital values have offered new investors the opportunity to secure improved income returns and there has been higher interest from funds and institutions eyeing buying opportunities.

The entire report can be viewed here.