London homes selling at fastest pace since 2007

London homes changed hands at the fastest pace since 2007 last month as the capital's property market drove a third month of UK house price increases, property researcher Hometrack said.

Average values in England and Wales rose 0.3 per cent, the same as in March, which was the largest gain in three years, the London-based firm said.

In London, prices jumped 0.7 per cent and homes stayed on the market for an average of 4.6 weeks, the least since October 2007.

"The real driver of price rises in April has been the London market, where demand has grown three times faster than supply over the last quarter," said Richard Donnell, director of research at Hometrack.

In the city, key market indicators, such as the time on the market, were now back to levels last seen during the peak in 2007, he said.

Better sentiment and a shortage of properties for sale are "key features" of the housing market that are supporting values, Hometrack said.

Plans announced by the government last month to assist prospective homebuyers and the fact that the economy returned to growth in the first quarter will bolster confidence further over the coming months, it said.