Dismay and delight over London's latest house price rise

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.

Homeowners will rejoice at the news their most expensive asset is more valuable than ever.

First time buyers will feel a sense of despair at the latest blow to their hopes of getting on the property ladder.

The latest survey from the Office of National Statistics shows London prices are up almost a third on their pre-crash peak in 2008.

The average house price in April was £485,000, an increase of £26,000 on March.

Homes in London shot up by 18.7% over 12 months compared with 9.9% in the rest of the country.

The pace of increase suggests the average house price has already topped £500,000 - a figure likely to be confirmed when the index for May is published next month.