London house prices are rising at their fastest annual rate in more than 11 years, as the gap between the capital and rest of the country continues to widen.

Prices in London rose 18.5pc year-on-year in May, nearly triple the 6.7pc annual increase seen across the country, according to Land Registry figures.

Average property prices in the capital are now £439,719, compared to an average of £172,035 for England and Wales.

Mark Carney, the Governor of the Bank of England, who on Thursday announced measures to head off a property bubble, said that while growth in house prices was not a problem yet, the size of the housing market made it one of the biggest potential threats to the economy.

Friday's Land Registry figures seemed to indicate a cooling in the property market, with month-on-month house prices across the country slowing in May to edge up just 0.4pc, while a separate survey from Hometrack for June said demand had weakened in the month with average price increasing just 0.3%.