London prime property prices have risen for the 5th month in a row, a new index has revealed.

According to the Knight Frank Prime Central London Residential Index, sales volumes are up 90% compared to January 2008, and Houses continue to outperform flats.

Liam Bailey, head of residential research, Knight Frank, commented:"Prices for residential property in central London rose for the fifth consecutive month by 1% in August. This latest price rise means that prices are now 6.4% higher then they were in March (the low point in the recent market cycle).

"The combination of rising prices and increasing confidence in the central London market has had a dramatic impact on the number of sales which have taken place. Sales volumes are up 90% since January 2008 and represent an incredible 234% increase in sales volumes compared to August last year.

"Price growth has been driven by the significant bounce in prices in Chelsea, Kensington and St John's Wood - where prices have risen by 5% in the last three months alone. "Since the market improvement in April - it has been the lower end of the market which has led the recovery. Prices in the £1m to £2.5m market have risen more than 5% in the last three months, compared to only 2.4% for the £10m+ market. Houses continue to outperform flats - with three-month price growth up by 4.6% and 3.6% respectively."

Source: The MoveChannel