In the capital house prices rose by 1.8% from September 2015 to average at £503,431.
London growth outstripped the rest of England and Wales, with other big risers being the South East (8.3%) and the East of England (8.0%).
For the whole of England and Wales prices rose by 5.6% annually and 0.4% on a monthly basis to average at £186,350 in October 2015.
Jeremy Leaf, former RICS chairman and north London estate agent, said: “The London property market in particular marches on with the greatest increase in average property values over the past 12 months. It was our busiest October in a long while in north London, with the market showing no obvious signs of a slowdown.
“The lack of supply is a huge issue and will continue to fuel house-price growth over coming months. Encouragingly, construction numbers are up, and the government is pledging to build more homes, but there is no room for complacency. Shortages are ongoing: every day that we are not building enough homes, the gap is widening between the stock we have and what is required, and upwards price pressures will continue.”
He added: “Demand for home ownership is high but affordability continues to be a problem for many. While mortgage rates are cheap, meeting lenders’ tougher criteria can be an issue. With the average property price in London more than £500,000, unless you earn way above the national average salary, you have precious little hope of being in a position to buy.
“Generation Rent is being left out in the cold: they have aspirations to buy but are being pushed further away from their goal. Any measures which help first-time buyers are good for the whole housing market and the London Help to Buy scheme will be helpful.”
