A total of 834 homes were sold in prime central London during the first quarter of 2014 – an 8.3% increase over the quarterly average for the past ten years.

The sub-£2m dipped slightly, but the market for houses over £2m continued to boom.

The figures come from Strutt & Parker’s latest London residential quarterly report. Stephanie McMahon, head of research, said: “The £2m-£5m and £5m-plus markets have seen exceptional growth both in values and volumes compared to the same period last year.

“We have seen a dramatic 47.2% increase in the value of homes sold during the first quarter compared to the quarterly average for the past ten years.”

Strutt & Parker expects prime central London prices to continue to rise by around 6.5% this year, but for them to drop back to 2% growth in 2015 ahead of the General Election.

Andrew Scott, Strutt & Parker’s head of London residential, said: “Back in the mid-80s I was asked, ‘When will the boom end?’ That was when a £10m house today was worth £450,000.

“Right now it feels like it will never end as we continue to see 15%-plus annual growth rates.”

Nearly 45% of all Strutt & Parker buyers in central London in the first quarter of 2014 were originally from overseas, with an increase in Asian purchasers and a decrease in those from the Middle East.