According to London Central Portfolio analysts, average house prices rose from £952,891 in March 2012 to £1,186,817 in March 2013 – a rise of 25%, the study of Land Registry data found.

Despite fears that properties between £2m-£5m would be affected by the increased Stamp Duty, sales rose by 8%.

London Central Portfolio chief executive Naomi Heaton said her firm was witnessing increased sales volumes at the top end of the market: “Transactions in PLC should continue to pick up across the year once the last of the negative sentiment washes through and when tax carve-outs, announced in the Autumn Statement, come into force at Royal Assent of the Bill in July.”

The capital’s most expensive sale in March 2013 was a flat at One Hyde Park, which sold for £29,350,000 – £29,342,000 higher than the lowest UK property transaction, a Welsh terraced house which sold for £8,000.

More such top-end sales would be registered in future, as the introduction of a 15% tax on buying these properties with a corporate vehicle had led to more individuals buying in their own name, LCP suggested.

Property prices for prime central London were 17% above their March 2008 peak, according to a recent report from Knight Frank.

Over half of buyers of £2m+ prime central London homes were based overseas and 65% of these bought with cash. Thanks to currency fluctuations and a weakened sterling, purchases were more affordable for these buyers, the report said.