London house prices in the first quarter of this year were up 18% compared with the same period in 2013, and prices in the capital are now 20% above their 2007 peak, Nationwide said.

"The gap between house prices in London and the rest of the UK is the widest it's ever been," according to Nationwide's chief economist, Robert Gardner.

However, the figures show that house prices are surging in other cities too. Prices in Manchester have risen by 18% over the past 12 months, while prices in both Brighton and Cambridge rose by 14%.

In contrast, prices in Sunderland rose by just 1%, and in Coventry by 2%.

Despite this, Nationwide said all UK regions saw house price growth for the third quarter in a row. The lender also reiterated its concern that not enough new properties were available to satisfy the growing demand, with new builds 40% below pre-crisis levels.

The Nationwide's figures are based on a sample of its own lending, and differ from other data.