Average cost of a two-bedroom property in central London estimated to reach £1 million by spring 2014

Marsh & Parsons released results of research which found that two-bedroom properties in prime central London grew in value by 14% during the last year. The current average value of such properties is £909,203, according to the figures. Should such a rate of growth continue for the next three quarters, the average price of a two-bedroom property in prime central London will be £975,843 by the end of 2013 and £1,010,974 by the end of the first quarter of 2014.

Marsh & Parsons said it had calculated the average price using the mean average value of all the two-bedroom properties in a "mix-adjusted, representative basket of properties" across the areas of Chelsea, Kensington, Notting Hill, Holland Park, Pimlico, Clapham, Balham, Battersea, Barnes, Pimlico, Little Venice and Brook Green.

In the prime central London areas of Chelsea, Kensington, Notting Hill, Holland Park and Pimlico, the average price of property already exceeds £2 million.

Peter Rollings, chief executive of Marsh & Parsons, said: "Compared to the rest of the country, prime London property prices may seem high, but the figures don’t tell the whole story. There is of course a huge variation between different areas in prime London."

"Very high value and high demand areas such as Kensington & Chelsea lift up the overall average figures, but there are still many areas of prime London which represent better value for money. As a result, we’re seeing many young couples and first-time buyers heading to parts of South and South West London in search of more space for their money," he said.

These findings from Marsh & Parsons follow the latest market trend data released by the Land Registry for July 2013, which concluded that July house prices were up 1% since June, with the average house price in England and Wales now standing at £164,098.