This is why London property is so high right now

But could it be approaching the limit?

London’s prime property world was whipped into a frenzy in Q1 with values growing 13.4 per cent in Kensington & Chelsea compared to 1.7 per cent nationally. But where did the demand originate?

According to Gary Hersham, owner of sales and search agent Beauchamp Estates, Singaporean buyers have benefited handsomely from the exchange rate making central London properties 10 per cent cheaper than five years ago and, further, strengthening of the euro has increased demand from continental buyers, particularly French and Italians.

"The domestic market has also been buoyed by relaxed lending boosted by the launch of the Funding for Lending Scheme in August,"Hersham says in his MarketInsight newsletter. ‘Mortgage approvals are rising and the Council of Mortgage Lenders forecast a further 10 per cent rise in lending in 2013."

Happy news no doubt, but cynics will say that the vertical may be approaching its limit. After all, mean reversion is one of the great truisms of finance and London has, over five years, moved in the opposite direction to the rest of the country, seeing price rises of 6 per cent against national falls of 11 per cent.

The capital’s fortunes depend therefore, says Mayfair’s number-one estate agent, Peter Wetherell, on continued good news on key exchange rates, Government encouragement for overseas investment and strengthening domestic demand. HNWs already invested in London prime will be keeping their fingers crossed, but with the market already well over its pre-crisis highs, the jury is still out.

This story first appeared on Spears magazine.

Photograph: Getty Images

This is a story from the team at Spears magazine.

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PMQs review: Jeremy Corbyn turns "the nasty party" back on Theresa May

The Labour leader exploited Conservative splits over disability benefits.

It didn't take long for Theresa May to herald the Conservatives' Copeland by-election victory at PMQs (and one couldn't blame her). But Jeremy Corbyn swiftly brought her down to earth. The Labour leader denounced the government for "sneaking out" its decision to overrule a court judgement calling for Personal Independence Payments (PIPs) to be extended to those with severe mental health problems.

Rather than merely expressing his own outrage, Corbyn drew on that of others. He smartly quoted Tory backbencher Heidi Allen, one of the tax credit rebels, who has called on May to "think agan" and "honour" the court's rulings. The Prime Minister protested that the government was merely returning PIPs to their "original intention" and was already spending more than ever on those with mental health conditions. But Corbyn had more ammunition, denouncing Conservative policy chair George Freeman for his suggestion that those "taking pills" for anxiety aren't "really disabled". After May branded Labour "the nasty party" in her conference speech, Corbyn suggested that the Tories were once again worthy of her epithet.

May emphasised that Freeman had apologised and, as so often, warned that the "extra support" promised by Labour would be impossible without the "strong economy" guaranteed by the Conservatives. "The one thing we know about Labour is that they would bankrupt Britain," she declared. Unlike on previous occasions, Corbyn had a ready riposte, reminding the Tories that they had increased the national debt by more than every previous Labour government.

But May saved her jibe of choice for the end, recalling shadow cabinet minister Cat Smith's assertion that the Copeland result was an "incredible achivement" for her party. "I think that word actually sums up the Right Honourable Gentleman's leadership. In-cred-ible," May concluded, with a rather surreal Thatcher-esque flourish.

Yet many economists and EU experts say the same of her Brexit plan. Having repeatedly hailed the UK's "strong economy" (which has so far proved resilient), May had better hope that single market withdrawal does not wreck it. But on Brexit, as on disability benefits, it is Conservative rebels, not Corbyn, who will determine her fate.

George Eaton is political editor of the New Statesman.