Two-bed properties in Prime London have grown in value by 14% in the course of the last year to hit an average of £909,203, according to research conducted by Marsh & Parsons.

If this trend continues, the estate agent calculates that these homes will break the £1m barrier by next March.

The value of two-bed properties grew at a much faster rate than other types of home in the second quarter of 2013, with a 6% increase from the previous quarter. The slowest quarterly growth was among four-bedroom properties, the average price of which appreciated by 3% during the second quarter of the year.

Peter Rollings, CEO of Marsh & Parsons said:

“Compared to the rest of the country, Prime London property prices may seem high, but the figures don’t tell the whole story. There is of course a huge variation between different areas in Prime London. Very high value and high demand areas such as Kensington & Chelsea lift up the overall average figures, but there are still many areas of Prime London which represent better value for money. As a result, we’re seeing many young couples and first-time buyers heading to parts of South and South West London in search of more space for their money.

“In addition, the dramatic price increases we’ve seen in the last year bear witness to the rapidly improved availability of mortgages and wider signs of economic recovery which have helped to clear the bottleneck of those who were waiting for the right time to purchase property. But over the coming year, we expect the rate of growth to stabilise in most areas as the Prime London property market returns to normal.”

Marsh & Parsons calculated the average price using the mean average value of all the two-bedroom properties in a mix-adjusted, representative basket of properties across the areas of Chelsea, Kensington, Notting Hill, Holland Park, Pimlico, Clapham, Balham, Battersea, Barnes, Pimlico, Little Venice and Brook Green.