London houses have seen their prices rise by 7.3% in the year to date, the highest level for three years.

London house sales, which account for just under a quarter of all London property sales, rose by 4.6% in 2017, a record year for the city.

London home prices are still far below their pre-recession peak in the second quarter of 2010, when the London house market reached a peak of almost £1.5bn.

The increase in London house-price growth since 2010 has been driven by the rise in the number of people moving into the city, and by a rebound in demand from overseas.

London’s population is expected to reach 7.5 million in 2021, up from 6.8 million at the start of the decade. 

The price of a typical home in London has risen by an average of 2.5% a year since the start in the early 1990s, according to the Institute for Fiscal Studies. 

However, the number buying a home has fallen by a staggering 43% since the peak of the housing boom in the late 1990s.

The Office for National Statistics (ONS) said the price of housing had declined by 7% since 2010, despite the creation of a new tax on the first homebuyers to raise £5bn a year.

It has been a challenging year for house prices in London, with sales falling by nearly 3% in September and October, while property prices have risen by almost 3.5%.

The latest data on house prices comes as London is grappling with the worst housing crisis since the Great Depression, as more and more properties have been snapped up by foreign investors.

In London, a buyer can expect to pay around £500,000 for a property, but the average price of London homes has risen to £1,700,000.

Many of these properties have gone up to around £3m, while others are currently under £1m.

London has seen its property market reach a peak in 2010 when it reached a total of almost five million homes.

London houses sold in 2016 at a pace of almost 5,000 a day, the fastest growth rate since the 1980s.

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