It also recorded a year on year increase of 39% from December 2008 to December 2009.
John D Wood & Co said it had now reached a new peak in December with an index point of 269 with the previous peak of the market being in March 2008 at an index point of 261.
The recent low point was February 2009 at 178 – however the market has now bounced back by around 51%.
The shortage of property has continued, thus forcing buyers to pay ever higher prices.
Peter Young, Managing Director, said: "Following one of the worst financial crises in recent memory the central London house market has rebounded strongly and surpassed the previous high. The weakness of Sterling and the monetary stimulus has meant we have had an influx of foreigners which has galvanized the domestic market and forced buyers to compete over the limited number of houses available."
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