London house prices are on track to end the year at their highest annual rate of growth since 2002, greatly outperforming other regions and highlighting the extent to which the capital’s housing market is breaking away from the rest of the country.

The latest FT house price index, published on Friday, shows that annual London house price inflation was 12.7 per cent in October after accelerating steadily throughout the year from 5.1 per cent in January.