This is despite stock on the market continuing to increase, with the monthly activity data showing supply growing faster than demand.

New sales instructions in February were 24% higher than last year and 47.5% higher than the pre-pandemic February average.

The stock of available homes for sale also continued to grow. At the end of February it was 11.6% higher than a year earlier and 37.5% up on February 2020.

Average achieved sold prices grew by 0.6% on an annual basis in February, the first increase in more than 18 months. This compares to pre-pandemic levels, with values currently 1.2% lower.

There were 8.4% fewer transactions in February than a year earlier but 6.8% more than the pre-pandemic February average.

On an annual basis, under offer numbers increased by 11% and are 18.8% up on the pre-pandemic average for the time of year.

After a slow January, the £5m+ rebounded in February with 13.8% more transactions than a year earlier.

New instructions in this market increased by 30% over the same period, with stock on the market also continuing to rise.

The number of £5m+ homes available for sale across prime London has risen by 21.1% over the 12 months to the end of February.

Annual rental growth across prime London increased to 6.0% in February, the highest level since November 2023, while average rents were 33.3% above their pre-pandemic average.

LonRes data for February indicated an annual decrease of 42.1% in lets agreed and a 29.4% decrease in new instructions, with activity on both measures remaining well below pre-pandemic levels.

The stock of available rental properties decreased on an annual basis, with 19.9% fewer homes on the market across prime London at the end of February than a year earlier.

LonRes head of research Nick Gregori says: “The main headline for February was that sales values across prime London recorded an annual increase for the first time since June 2023.”

“The prime London lettings market continues to be constrained by a lack of stock. Robust demand and low levels of new supply are sure to put upward pressure on rents so it’s no surprise that annual rental growth increased to 6.0% in February, the highest rate for 16 months.”

“Within this average figure, larger properties are leading the way – flats with three or more bedrooms have seen the strongest annual growth and houses have been outperforming more generally since the pandemic.”