The latest Marsh & Parsons property monitor said 29% of property purchases in central London areas were by investors.

However, more first-time buyers are entering the market with 28% of sales now made to this section of the market.

Prices continue to rise at a rapid rate with the typical property having risen in value by £75 every day over the last year.

This was due to increased demand for properties in the capital, with 12 buyers hunting every property. Overall demand was up 20% in the first three months of the year.

The number of these transactions funded by mortgages grew to 17% on the back of increased first-time buyer activity.

Peter Rollings, CEO of Marsh & Parsons, said market conditions were proving more favourable for first-time buyers.

“First-time buyers have been riding a wave of fortuitous circumstances recently – with almost unheard of mortgage rates, reduced up-front stamp duty costs, and support schemes like the Help to Buy ISA inflating confidence,” he said.

“Combined with a more accessible pace of property price growth so far in 2015, many more have been able to take the plunge into the property market. Prime London property has always been a bastion of investment, but it’s encouraging to see the drawbridge being lowered for everyday Londoners who live and work in this city.

“However, there is, and has always been, some aspirational Prime Central areas that are out of grasp for new buyers, and will remain an investment stronghold.  Addresses like Kensington and Chelsea resonate around the world, and will forever entice buyers looking for unparalleled capital returns.”