KEY POINTS:
The prices of London's most expensive homes rose last year at the fastest pace since Margaret Thatcher became Prime Minister in 1979, as bankers receiving record bonuses competed for a limited supply of properties.
Prices of prime properties in England's capital gained 2.6 per cent in December, bringing the increase for the year to 28.6 per cent, London-based real estate broker Knight Frank said.
In 1979, prices rose almost 44 per cent.
Workers in London's financial district may have earned a record £8.8 billion ($24.8 billion) in bonuses last year, 18 per cent more than in 2005.
The average asking price for a house rose to £355,097.
The biggest gains were in Chelsea. Prices also rose in Kensington, and Belgravia.
- BLOOMBERG
