Prices continue to rise quickly as the amount of property available is down 30% on this time last year, with more wealthy buyers from home and abroad chasing the dwindling supply.

Ian Springett of website Primelocation, which produced these figures, said: “After the poor performance of the London market in comparison to the rest of the UK between 2002 and 2005, the prime London sales market has bounced back with a vengeance.

“Confidence in the market will be further enhanced by recent announcements of another record round of City bonuses in the New Year”.
The London boom is in stark contrast to the market in prime country houses, which has been stagnant with the exception of the very top end.

Top rentals have also risen sharply but not as fast as sale prices. “The stock of available homes in London’s best locations has plunged to the lowest level we’ve ever recorded”, Mr Springett said. “It is down 20% on last year and the top ones are down 30%”.

The highest prices are still in Kensington, Chelsea, Mayfair and Belgravia. But 16% increases in St John’s Wood, Hampstead and Maida Vale mean that north-west London is catching up, as are desirable locations such as Richmond and Barnes.