House prices in London reach a new record high

House prices in London have reached a new record high after yet another monthly surge.

The average price of a home in London hit £485,000, according to the latest figures from the Office of National Statistics.

The ONS monthly House Price Index showed an average increase of £26,000 from March to April.

The news will come as a blow to first-time buyers in the capital struggling to gain a foothold on the property ladder.

Based on the rate of increase, figures for May are likely to show the average house price has already topped half a million pounds.

The figures pour cold water on recent claims of a "cooling off" in the London property market.

The £485,000 average price compares with £271,000 in the rest of England. London prices rose annually by 18.7% while the rest of the UK saw an increase of 9.9%.

Labour used the latest figures to attack London mayor Boris Johnson. London Assembly member Tom Copley said: