A 0.55% rise in December, the Primelocation Index's second monthly rise, leaving London asking prices 3.8% up on December 2007. Strong neighbourhoods included west and south west London; there were small falls in Islington, the City and Docklands. Here's Primelocation's Head of Insight, Andrew Smith:

"Over the past couple of months prime agents have reported a modest upturn in activity (albeit from a very low base), a trend which can be attributed to the impact of falling prices, lower interest rates and a rise in demand from overseas buyers attracted by the dip in the value of Sterling."

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