The economic think tank predicted that average prices in the capital will increase by a whopping 16.1% this year to reach £466,000.
But the rest of the UK is expected to see just a 6.9% rise to £242,000 before slowing to a 5.1% increase to £254,400 in 2015.
CEBR said its predictions for next year were tempered by the spectre of further regulatory intervention in the mortgage market and by a strengthening pound potentially deterring foreign investment in the UK property market.
In its forecast the think tank looked as far forward as 2018 and said that the government’s austerity plans could also see house price inflation be slowed even further.
It predicted a 3.4% growth in UK prices during 2018 with the average UK home set to cost £287,300 whilst a home in the capital will set a buyer back by £660,000.
