London property prices defied the economic gloom last month with a 7% annual rise to a new average record high of £364,574, according to a new report by the Evening Standard.

The market jumped by 1% in October alone as all-time low mortgage rates tempted back first time buyers and foreign investors continued to pour billions of pounds into London property.

It means that the typical London home is now worth almost £24,000 more than it was one year ago, according to official Land Registry figures.

The biggest annual rise was in Kensington & Chelsea where values went up 15.9% to an average of £1.09 million.

Double digit rises were also seen in Westminster and Hammersmith & Fulham. The only borough where prices were less than a year previously was Redbridge.

The figures will increase fears that the lack of new supply of homes is artificially pushing up prices to levels well out of reach of young workers.

The Standard revealed last week that a minority of families in London now own the roof over their heads for the first time in 30 years because so many have been forced to rent.