London Housing Bubble? £2m Average Price in 13 Post Codes

Thirteen central London post codes have an average property price of over £2m.

That is according to a report by asset management firm London Central Portfolio (LCP), which specialises in residential property investment.

And of the 51 prime central London post codes analysed by LCP, 22 are experiencing annual price growth of more than 10.64%, the long-term average.

Belgravia's post codes SW1 7, SW1 8 and SW1 9 recorded the highest average property price of £4,405,741.

The lowest in the central London area was the SW1V 3 post code with its £593,600 average.

"As a 'go to' destination, a financial centre, and premier league provider of education resulting in demand outstripping supply, it is again no surprise that price growth in prime central London is consistently high across all post codes," said LCP.

"Even at its lowest ... long-term average price growth has been 8.24% per annum, far higher than most other asset classes."

London property is a prime target for foreign investment. Some use the market to shelter their cash from domestic problems, such as the Ukraine crisis or the Greek economic meltdown.

Many see it as a lucrative opportunity. This is because annual property price growth has been so accelerated, offering a quick and significant return on investment.

And those eyeing the rental market can also cash in on rising returns from high rents in sought-after areas of central London.

Critics say there is more supply than justifies the demand in prime central London property, where prices may start to unwind.

And others are concerned that such bloated prices are spilling over into outer areas of the city, pricing out people on ordinary incomes and pushing them further from the centre.

According to the Office for National Statistics (ONS), the average price of a London home rocketed by 17% in the year to March 2014, hitting £459,000.