The capital saw the UK’s highest average rise.
House price horror is continuing as new figures show rises of over 10 per cent over one year in some South West London boroughs.
The capital saw the UK’s highest average rise of 6.2 per cent, with the biggest jump seen in Camden with 11.8 per cent.
Merton, Hammersmith and Fulham and Wandsworth experienced the next largest increases in London with 11.4, 11.0 and 10.8 per cent jumps respectively.
National Housing Federation (NHF) director Gill Payne said: “Businesses are finding it tough to attract workers and expand because many people can’t buy a home.”
The most expensive average house price in London was found in Kensington and Chelsea at £1.1 million.
Overall house values in England and Wales increased by 0.7 per cent since April 2012, with the North East experiencing the biggest decrease of 5.7 per cent.
Ministers maintain they are improving the market by giving prospective buyers easier access to mortgages and encouraging building with planning reforms.
Mark Prisk, housing minister, said housing is now the most affordable for first-time buyers for a decade, mortgage rates are at their lowest for 14 years, and homebuying costs have fallen over the past four years.
A ComRes survey for the NHF found 55% of managers consider the availability of affordable housing to be important if expanding in another area.
Lucy Thornycroft, head of housing policy at the CBI, said: “We now need to see a real urgency to boost housing supply and affordable housing.”
The government plan to provide 170,000 new homes from an affordable homes programme having safeguarded £19.5 billion of public and private investment.
A £1billion Build to Rent scheme will also help deliver new homes specifically for private rent.
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