The gap in average house prices between London and the rest of the UK has widened from 47 per cent in 1996 to 107 per cent in 2016.

According to Lloyds Banking Group there is now a £299,631 gap between the price of the average home in London and the rest of the country.

This gap has been further accentuated by the huge rise in prices in London's 'prime' boroughs, Kensington and Chelsea, the City of Westminster and the City of London. In those areas prices are now 5.72 times the England and Wales average compared to 3.34 times the average in 1996.

Andrew Mason, Lloyds Bank mortgage director, says: "The last 20 years have seen substantial growth in house prices in London, especially in the most affluent areas in the city.

"The boom years between 1996 and 2008 saw the gap widening between house prices at the top end of the market and those in London's inner and outer boroughs, creating two distinct markets – prime and mainstream."

However, he went on to say that the dramatic rise in prices within London's 'prime' boroughs has also had an effect on property values in areas immediately outside the capital.

"While those boroughs at the top end have pulled away considerably from the rest of London and the country in terms of house prices, improved transport links to the city from the outer boroughs and the 2012 Olympic Games has meant that the boroughs directly benefitting from these have seen house price growth outpace the prime areas in recent years."

Lloyds Banking Group's figures show that between 1996 and 2016, 20 London boroughs have seen average house prices increase by more than £400,000. The largest increase in values has been in Kensington and Chelsea, where the average house price has grown from £279,768 to £1,559,518. This is equivalent to £6,498 per month.

Average salaries in London have failed to keep pace with the risen in property values. In 1996 the average price to earnings ratio in London was 3:9. In 2016 this rose to 11:6.