Luxury homes in London are attracting record levels of demand as buyers and investors flock to obtain prime residential property in the capital.

Demand in the luxury housing market in London is "storming ahead", according to research commissioned by the Centre for Economics and Business Research (CEBR).

The study found that 1,387 houses sold last year for at least £2 million, up from 1,297 in 2011.

And it means that demand for luxury London properties is even higher than before the financial crash, with last year's total 14.5% higher than the peak level of 2007.

The soaring levels of demand are also reflected in rising prices at the top end of the London property market, the research suggests, with the average price of a prime home in London reaching £3.75 million in 2012 and tipped to hit £3.81 million this year.

Price at the top end of the London luxury homes market have surged even further ahead, according to the figures.

The average price of the top 10 most expensive houses sold in London last year was £25.3 million – a considerable increase from £14.5 million in 2011.

And the surge may be set to continue still further this year, with the CEBR reporting that sales are up by "a huge 32% year-on-year in the first half of 2013”.

The CEBR estimates that total sales of £2 million-plus homes could reach 1,826 this year.

Official figures released earlier this month indicated that residential property prices in London have also been increasing lower down the market.

Simon Rose, Head of Strutt & Parker West Chelsea, confirms that they have seen similar figures. He explains: "We have had one of our busiest summers. What is typically a quiet period has seen an unusually busy few months with a number of families wanting to secure homes before the more frantic autumn market. The demand for good homes presented well is still hugely strong and British buyers are doing a great job of rivalling the foreign investment in certain areas. With this flurry of activity it is natural that prices are creeping up again and new record prices are being achieved.”

London house prices increased by 8.1% in the 12 months to June, according to the figures, which is the fastest rise since November 2010.

While the increased activity has been welcomed, some industry commentators have voiced concerns that another housing bubble may be in the process of being spurred on as government efforts to stimulate the market take effect.

The data released by the Office for National Statistics suggested there is stable house price growth across much of the country but London prices are pushing further ahead.