Prices for prime London property rose 1% in February 2011, contributing to annual growth of 8%, according to Knight Frank. The estate agent reported that prices have now risen 24% since their recent post-credit crunch low in March 2009 and that prices are just 2% lower than at the peak level reached in March 2008.

The number of nationalities buying property in London has hit a new record of 61, (up from 46 in 2009) all buying property in the 12 months to the end of February this year. The fastest growing nationalities in terms of market share are buyers from Spain and Uzbekistan.

Liam Bailey, head of Knight Frank residential research, comments: “Prices slipped in London during the summer and autumn last year, which fitted the wider narrative of a weakening UK economy and a weaker national housing market.

“Since then prices have resumed their recovery, and in the four months to the end of February they rose by 4%. The reasons for this growth, and the divergence of this market from national trends, can be partially ascribed to low stock volumes, and a desire from buyers over recent months to buy and fix their borrowing costs at very low rates.

“However, the most important factor driving price growth has been growing demand for London property from international buyers. Over the last 12 months the proportion of £2m+ sales which have gone to non-UK buyers hit 52%. Above £5m the figure was 64%.

“Looking at our top 15 fastest growing nationalities by market share, we can see several trends at play. Eurozone concerns appear to have pushed buyers from Spain, Greece and France into 1 st, 5 th and 12 th place respectively.”