Prime central London residential property prices rose by 0.4 per cent in June, up 3.7 per cent in the year to date and now 60 per cent higher than the market nadir of March 2009, although the most expensive real estate lagged in performance terms, partly due to new taxes, according to Knight Frank.

Over the past 12 months, luxury properties in the UK capital – still a big draw for international investors seeking a safe haven and potential capital growth – have risen in price by 6.9 per cent, the global estate agency said.

A more detailed examination of the data shows that there are wide variations in terms of price performance depending on the value of a property. While prices have risen across all price brackets in 2013, at the lower end of the market , properties have seen an increase of 6.6 per cent over the year to date. Annual price growth for sub-£1 million properties stands at 12.1 per cent, well above the overall prime central London average gain of 6.9 per cent, the firm noted.

In the £1 million-£2.5 million price bracket, properties have increased in value by 5.4 per cent in 2013 and by 8.5 per cent over the last 12 months.

“Price growth for properties in the higher price brackets has been more muted in comparison,” Knight Frank said.