In a housing market where demand from buyers has continued to fall causing house prices to decline, London has seemed to rise above the problems seen elsewhere. In only a few years after a financial crisis that seemed would cripple all areas for a long time London house prices are close to hitting an all time high. Agents are reporting not only have the prices increased but they are still moving upwards and expected to continue to do so throughout 2011.

According to data from the Land Registry, the all time high in central London was recorded in January 2008 at £352,869. Currently that level is only three percent above current average prices for the London area. In three boroughs the average prices have already risen above their peak prices seen during the housing boom, those being Kensington and Chelsea, Westminster and Camden. Still others such as Islington and Hammersmith and Fulham are very close to rising above their peaks as well.

Property agents are expecting a continued rise of 5 to 10 per cent in 2011. This would mean that in Kensington and Chelsea the average mark would spill over the £1 million mark for the first time.

Trevor Abrahamsohn of Glentree International agents said, "They don't ring a bell as you pass a previous high but if they did it would be ringing now."

The trend of rising house prices close to peak prices has been seen outside of the central London area. The Land Registry also reported that prices in suburban Barnet are within one per cent of their peak, Southwark two per cent and Hounslow three per cent.

The market has benefitted from low interest rates of 0.5 per cent base and the increase of foreign buyers entering the market.