The best properties in Central London have risen by as much as a third in the past year, according to the latest Knight Frank report.

The research found this is the fastest rate of growth in the capital since 1979 and means that prices in central London are now rising faster than the wider UK market by almost three times, with Belgravia and Knightsbridge leading the way, charging £3,000 sq ft. Only Monaco is able to compete with London in these terms, the report claims, with prices of £2,190 per sq ft and New York, Hong Kong and Tokyo follow on at £1,600, £1,230 and £1,100 per sq ft respectively.

Liam Bailey, Knight Frank’s head of residential research said: “Our data reveals some indications that the market may well be close to its peak in London. A slight shift in demand and supply appears to be beginning which, if it continues, will begin to see a move away from a sellers to a buyers market. We believe that price growth will begin to become more subdued by late summer, but we still think that central London prices for property priced over £3m will grow by 20% in 2007.”