Market analysis from LCP showed that the prime central London market experienced upward price growth of 12.3% last year.

This growth rate is still below the 18.2% growth witnessed in 2007, just prior to the credit crunch, and the 16.5% growth in 2010 when the market quickly recovered.

Instead it remains closer to the long-term trend of 9% a year seen over the last half a century which is where LCP sees the market falling back to this year.

In its newsletter LCP said: “The prime central London housing sector, notoriously volatile due to its tiny size and huge price diversity, put in an exceptionally strong performance last year.”

Nearly 1,000 houses were sold representing an annual increase of 19.4% in 2013.

The average price of a house in prime central London now stands at £3,335,278.

But LCP said it was important to note that headline average prices in this market were becoming increasingly distorted by ‘super prime’ transactions.

“The flats and maisonettes sector is far more indicative of the market as a whole as 82% of all sales fall into this category,” it said.

“This means the ‘true’ average price of property in prime central London is actually much closer to the £1.1m average for flats and maisonettes.”

The main drivers for growth still in place for prime central London are its status as safe haven and its reputation as a cultural, financial and educational centre.

LCP has predicted continued upward price appreciation in 2014 but it is expected that the rate of growth will slow as prices continue to move towards the long term growth line of 9% per annum.