The residential property market in Greater London has outperformed the rest of England over the past year, according to consultants Acadametrics, which compiles the FT house price index.

According to the report, capital growth in England rose on average by 6.6%, with average property prices now standing at £207,899. However, in London residential property prices appreciated on average by 11%. The south-east grew 6.1% and the south-west and north-west both up 5.8%, and East Anglia up 5.3%.

Peter Williams, Acadametrics chairman, said: “Monthly house price growth has strengthened further in October following a relatively weak period over the summer. This strong performance has been led by London and supported by the South East and South West.

“There remains a risk that the London market is slow to adapt to higher interest rates as localised supply shortages continue to dominate a generally low housing turnover market.

“Setting appropriate interest rates against this backdrop will be difficult as most regional markets in England and Wales have experienced more limited house price growth in the last 3 months in contrast to London where the annual rate has risen to 11% and any increase in rates could have a significant effect.”