As a result, there are now 30 buyers chasing every property worth more than £2m in high value areas of London.= according to estate agency Patterson Bowe.

Fears that a mansion tax would be charged on such properties have disappeared and sparked a race for homes in the Kensington and Chelsea area of the capital.

The agency claims there are now an average of 30 potential buyers for each property listed at £2m or more.

This means many properties in the area are now valued at more than £2,000 per square foot.

Stuart Patterson, managing director at Patterson Bowe, said that many in London still had concerns over the level of stamp duty charged.

“Of the properties we currently have under offer at £2m and above, the majority have now achieved above average prices for the area at more than £2,000 per square foot,” he said.

“Although the recent hike in stamp duty is taking time to be absorbed into the market, it remains a significant factor both to a purchaser and conversely to vendors considering moving or trading up.

“However such has been the flurry of buyer demand since the election we would be confident in assuring anyone thinking of selling in the borough that they would be able to command a price that would comfortably include any stamp duty costs into the overall purchase price owing to the highly competitive nature of the current market.”