A record 18 buyers were chasing every central London home up for sale last month, estate agents said today.
The huge competition means buyers must stump up nearly 98 per cent of the asking price to seal the deal in London on average, up from 95.3 per cent a year ago.
Brook Green in west London - where a four bedroom house typically fetches £1.5 million - is the most popular area with 35 buyers chasing every property on the market, attracted by cheaper prices and good schools.
Traditional hotspots Notting Hill and Chelsea have 22 and 19 buyers chasing every home respectively, according to figures from estate agents Marsh & Parsons.
Chief executive Peter Rollings said: "Swelling demand for a limited pool of homes on the market has turned central London into a real seller's market, and well priced properties are encouraging multiple bids."
But Ed Mead of agents Douglas & Gordon said the market was still "polarised" with less attractive locations struggling to find buyers. He added that the most active part of the market is currently the £400,000 to £1.25 million range where domestic buyers are more dominant.
A shortage of properties is also squeezing prices upwards. Marsh & Parson's said buyer registrations have jumped 17 per cent in the past year but the number of homes available dropped by six per cent.
