Prime Central London (PCL) prices recovered in Q2 after two years of stagnation, data from the Land Registry has shown.
Average prices in PCL saw a quarterly price growth of 7.9% to £1.95m, with sales volumes experiencing an annual increase of 4.8%.
However growth in the buy-to-let sector was the most sluggish with a 1.3% increase in average prices for property under £810,000.
Naomi Heaton, chief executive of London Central Portfolio, said: “The increase in average prices appears to reflect a greater proportion of high value properties being sold, rather than any significant underlying growth.
“The buy-to-let sector, on the other hand, is seeing a much slower picture as investors continue to adopt a wait and see attitude.”
The data analysed by London Central Portfolio in conjunction with Acadata suggests that the increase in average prices can largely be attributed to a surge of high value sales.
England, Wales and Greater London continue to see falling transactions and slower overall price growth with increases of 0.27% and 4% respectively.
“Despite government measures to reduce Stamp Duty for 98% of the market and schemes to promote activity such as help to buy, weaker sentiment and restrictions on borrowing continue to impact on the domestic market in England and Wales.”