Prices for homes worth more than £1m have continued to rise at a surprising rate this summer as cash-rich buyers chase limited supply, according to data from two leading estate agents.

Prime house prices in central London rose 1.3% in the past four weeks, their sixth consecutive monthly rise, according to Knight Frank. That meant the annual rate of change improved to -8.9% from -12% in August.

Savills said prime London prices rose by 4% between June and September thisear, following a similar rise in the second quarter. Price growth in some areas exceeded 9 per cent since March this year, notably in affluent London areas such as Chelsea, Kensington and Notting Hill. Average prices are still 18% below their March 2008 peak, however.

Financial Times