The figures mark the highest growth rate for the capital since 1987.
New figures which explode the myth of a slowdown in London's housing market are likely to be met with dismay and delight in equal measure.
The average price of a home in London hit £485,000, according to the latest figures from the Office of National Statistics.
Rents in London have risen 9.4% over the last year.
New figures from the HomeLet Rental Index show the cost of renting in London is increasing five times faster than national average incomes.
It has said the average rent in the capital now stands at £1348 per month
The gap in house prices in London and the rest of the UK is the widest it's ever been, reports ITV's Business Editor Joel Hills.
Gap between house prices in London and rest of the UK is widest it’s ever been, both in cash and percentage terms. http://t.co/S9o5Fmsq3q
See the chart below for a national breakdown.
House prices in London now 30% higher than pre-financial crisis peak, but not everywhere. http://t.co/Z7mkLs6Xn4
The typical price of a London property is now more than double the average UK house price breaking through the £400,000 mark for the first time, Nationwide said.
Cambridge saw the biggest surge in house prices with a 20 per cent increase putting the average cost of a house there at £419, 187.
While the value of properties in St Albans rose 18 per cent reaching an average of £451, 800.
Newcastle was named as the worst-performing city with only a three per cent increase in house prices taking prices there to £181, 473 typically.
In Wales property prices are up almost 10 per cent on a year ago now standing at £145,812.
And in Scotland, typical prices rose to £141,872, figures show.
However, In Northern Ireland, where the housing market is still recovering from some sharp falls in the wake of the financial crisis the average house price now stands at £117,150.
This is around half the level they were at their peak.
One in three Londoners fear having to move out due to the rising cost of housing in the capital.
A new survey by the Chartered Institute of Housing found that 34% of people agree they might have to leave their local area in the future, because the cost of housing is too high.
That's compared with 20% across the rest of the country.
The survey also found that 3 in 10 people living in London are concerned about being able to pay their rent or mortgage and 36% said concerns about housing costs are causing them a great deal or a fair amount of stress.
The survey also showed that Londoners are more unhappy with their homes than the average person in Great Britain.
18% per cent say they are very or fairly dissatisfied with their home compared to just 12% across the nation.
London houses prices are up almost a third on their pre-crash peak in 2008.
- New figures suggest the average house in price in London has already topped half a million pounds
- The latest house price survey from the Office of National Statistics put the average price in April at £485,000
- The survey revealed an increase of £26,000 on March
- If that pace of rising prices continues, figures for May are likely to show an average price in excess of £500,000
Labour used the latest figures to attack London mayor Boris Johnson. London Assembly member Tom Copley said:
In an interview this week, Boris Johnson said he thinks that soaring property prices are "the right problem to have". With the average house in London now worth £485,000, low and middle incomes Londoners struggling to get on the property ladder would vehemently disagree with this assertion.
Boris Johnson has utterly failed Londoners on housing over the past six years of his Mayoralty. A key driver for the soaring property market is the fact that he is currently only building a third of the 62,000 new homes we need in London each year to keep pace with our growing city.