The north-south property price gap continued to widen between July and September this year, according to new figures compiled by Nationwide.

In its quarterly report on house prices, the firm pointed out that while house price growth across the UK as a whole had fallen from 10.2 per cent in quarter two to 9.3 per cent in quarter three, the cost of buying a home in the capital is so high it is widening the gap dramatically.

Fionnuala Earley, Nationwide''s chief economist, said: "London again saw the fastest annual pace of price growth in England by a considerable margin. The capital has outperformed the annual average for England for nine consecutive quarters."

As well as contending with continuing price growth, it was also announced this week that buyers in London are facing the highest stamp duty in the country.

Halifax claimed that those purchasing homes worth more than £125,000 in the capital paid £1.7 billion last year.

Ms Earley pointed out that as the average price of a London property was in excess of £300,00, proposals on raising the stamp duty threshold for first-time buyers made by the Conservative party this week would not benefit.