Greenwich saw highest price rises in 2014

Prices in the South East corner of the capital rose by 24.6% on an annual basis from £263,183 to £328,044, far exceeding London’s average of 13%.

It is followed in the capital by Ealing (24.5%), Tower Hamlets (22.0%), Kingston upon Thames (21.4%) and Sutton (20.7%), while Crawley in Sussex (22.4%) was third on the list.

Craig McKinlay, mortgage director at Halifax, said: "A number of towns and cities have recorded significant rises in house prices over the past 12 months.

“Nine of the 10 best performing areas are in the capital, and therefore within easy reach of central London.

“Continuing improvements in the economy, rising employment and low mortgage rates will no doubt have supported housing demand and, combined with shortage of homes coming on to the market, will have contributed to rising property values.

"At the other end of the spectrum, several of the towns experiencing price falls in the past year are still suffering from relatively weak employment conditions which may have had an adverse impact on their local housing markets."

The top performer outside the South was Sheffield (13.7%) having seen employment flourish, particularly in managerial, professional and technical skilled occupations.

Towns which saw house prices decline include Bury in Lancashire (-4.8%), Keighley in West Yorkshire (-4.4%) and Nuneaton in Warwickshire (-3.2%).

Four out of the 10 weakest performing towns were in the North West, with St. Helens (-2.6%), Preston (-2.0%) and Rochdale (-0.9%) joining Bury.