House prices in London have risen by 14.5% since April 2015, according to the latest data released by the Office for National Statistics (ONS).
The house price index showed the capital experienced the highest level of growth in the country, with the East Of England second at 13.6% and the South East third at 12.3%.
The average price of a property in the capital now stands at £470,000 according to the research.
The City saw the highest annual rise out of all local authority areas with an increase of 27.3%. The average price in the area now stands at £928,217.
The increase came despite evidence activity in the housing market had slowed after April’s Stamp Duty increase for buy-to-let investors and buyers of second homes.
The ONS claimed that the possibility of leaving the EU after the referendum had not affected demand.
Richard Sexton, director of chartered surveyor e.surv , told the Independent: “Despite the short term uncertainty of next week’s EU referendum, regional property markets are receiving a pre-summer swell, giving homebuyers more choices.
“And while a lift in prices doesn’t spell completely bad news – marking real demand and strong local housing momentum – it does mean more work is needed for first-time buyers.”
A recent study by PricewaterhouseCoopers claimed that London would become a city of renters by 2025, when only 40% of city dwellers will own a home.
The research predicted that the number of people renting would be 24% higher in 2025 than it was in 2000.
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