Buying a house in London costs nearly a fifth more than it did a year ago, according to new data.

Growth in property values in London continues to outstrip the rest of the UK, with the average price in the capital leaping by 19.6 per cent year-on-year in August to stand at £514,000, the Office for National Statistics (ONS) figures show.

Month-on-month, the average house price in London was static having pushed over the half-a-million-pound mark for the first time in July.

For the UK overall, house prices reached a new all-time high of £274,000 on average in August after surging by 11.7 per cent year-on-year, according to the official figures.

Meanwhile, another report states buying a home in London is less affordable now than it was at the previous peak of the market in 2007, although in the rest of Britain the situation has improved.

The ‘affordability index’ compiled by estate agent Hamptons International looked at the combined pressure buyers face from the cost of living as well as rising house prices.

It found current low mortgage rates mean the ability to buy a home has generally got better despite the amount of income some families have left over after paying for essentials such as food, utility bills, council tax and childcare being around £60 a month less now than it was at the start of the economic downturn in 2008 as wages have remained flat.

The report, which is based on someone having a 15 per cent deposit to put down, said that compared with 2007, the ability to buy a home has improved everywhere apart from London, where house prices have been surging.

Hamptons found the struggle to get on the housing ladder in London is particularly acute for couples with two children where one parent works full time and the other has a part-time job, as well as for first-time buyers.

These groups would be likely to have more money flowing out of their accounts on their mortgage payments and other essentials than they would have coming in as an income, it found.

Have you struggled to buy a home in London and have either had to stay renting or look elsewhere? Are you a young person starting out who worries about whether you’ll ever be able to get on to the properly ladder? Do you think more could – or should – be done to keep house prices under control or to help first-time buyers? Add your comments below.