The capital has seen a steady increase of 12.3% on its properties prices figures from the Office for National Statistics have shown.
The average price of a home in the United Kingdom also went up to £250.000 last December.
The housing market is registering its first major boom since recession started in 2007.
British seller and renting Rightmove shared that prices have risen £8,103 in January this year. The companies’ website has also registered a major increase in visits with up to 50 million clicks and a 20% rise on email enquiries.
Britain’s biggest estate agent, Haart said that home prices in London went up by 18.4% an average price of £448,800, more £69,784 more than the previous year and double of an average Londoner salary.
Construction of new properties is also on the rise, with an 1.3% increase in 2013.
The Bank of England has although insured the genera public that interest rates would not rise before spring 2015 but would register an increase of 2% by 2017.