Despite house price growth across the UK currently experiencing a slight slowdown, the London market continues to accelerate, according to the latest figures from the Financial Times.

Over the past 12 months, the average house of a house in Greater London grew by 15.2 per cent, while the 10.1 per cent and 8.6 per cent growth experienced in the south-east and south-west respectively, has been partly attributed to a spill-over of demand coming out of the capital.

In comparison, house prices increased by 4.2 per cent in the West Midlands, 4.2 per cent in the north and by 5.6 per cent in the East Midlands, the newspaper's house price index also revealed.

Commenting on the figures, Peter Williams, chairman of Acadametrics, the consultancy firm behind the index, said: "The expectation of a slowing market as the year goes on remains given that the effect of successive interest rate increases continues to work its way through the system.

"The bank's recent decision to hold on rates was welcome not least given the newly advised increased incidence of arrears and possessions and the continued uncertainty created by the difficulties in the US sub-prime market."

A recent report from the National Housing Federation claimed that the average London home could cost around £500,000 by 2012, with the growth driven by the continued success of the City.