London house prices are hitting record highs – even when compared to soaring prices before the recession.

The average house price in London rose £748 last month to £376,605, according to independent house price analysts Acadametrics.

Their index also shows property sales in the capital between December 1 and the end of February were up 86% on the same period year-on-year.

Acadametrics put the increase down to higher demand, a rock bottom market and low interest rates.

The group’s index puts the average house price for England and Wales at £227,788 for March 2010. Completed sales were up 1.1% up from February.

the year-on-year comparison shows the price of a home is up 13.4%, which is a massive turnaround from March 2009 when the annual change stood at -13.1%.

Dr Peter Williams, chairman of Academetrics, said the average price of a home is back to levels last seen in August 2007.

“However, transaction numbers remain relatively low, such that small pockets of demand can exert a higher influence on price than one would see in a more active mortgage market,” he commented.

Acadametrics is a research-based consultancy based in London focused upon the housing market. Unlike the Nationwide and Halifax indices, the group is not involved in lending mortgages.