This increase was despite a mirroring of conditions across the UK seeing transactions drop by 24 per cent compared to the third quarter.
The huge 50 per cent price increase was largely focused on houses as opposed to flats and maisonettes, and growth centred on the wealthy boroughs of Westminster and Kensington & Chelsea.
The more stable flats & maisonettes sector grew by 16 per cent over the same period
Most astonishingly, the average price for a detached house in Kensington & Chelsea grew by 300 per cent over the course of the year to hit £13 million.
London Central Portfolio believes that despite the fall in transactions, the pent up demand resulting from a 'frothy summer' will see the stats pick up going forward.
Naomi Heaton, LCP chief executive, said that prime property prices like these in the capital were skewing the national figure so should always be taken into account.
She added that the sales market for one and two bedroom flats and maisonettes in prime London Central was not really significantly affected in the 1991 recession or after 9/11. Instead it was the higher end flats and houses that took a body blow - a situation she feels will rear its head once again if economic conditions continue to deteriorate.
Heaton concluded that banks should remain sensitive of the situation facing consumers, with the relative inexperience of younger bank managers taking a toll.
She said: "The problem with the banks is that many of their managers are too young to have seen a bear run like the one in 1989. However if they sit tight they will ride it out."
