The capital also saw a monthly rise of 4.2% in April which represents the highest monthly rise experienced in the UK.
The North-East saw the lowest annual price growth with a movement of 2.9% and was the only region to see a month decrease with a drop of 1.9%.
The most up-to-date figures available show that during February 2014 the number of completed house sales in England & Wales increased by 38% to 62,368 compared with 45,236 in February 2013.
The number of properties sold in England and Wales for over £1m in February 2014 increased by 65 per cent to 836 from 507 in February 2013.
Tony Bennett, managing director of Platinum Property Partners, said: “The housing market is clearly moving from strength to strength. However the flipside to accelerating house prices is the property ladder inching further away from the grasp of aspiring buyers.
“The government’s flagship Help to Buy scheme has galvanised some new buyers, and for these the support has been vital. But with less than 7,500 homes sold under the scheme's second phase, it is just a fraction of the total across the UK.
“As more and more are locked out of the market, the demand in the rented sector will only intensify. Not only will it be a case of landlords widening the pool of rental homes, but also ensuring these are both affordable and to a high standard.
“For landlords, rising house prices represent a welcome uplift in capital values. However, particularly in a fluctuating market, we urge buy-to-let investors to pay attention to the income potential of their properties as well as capital growth.
“PPP’s latest research found that only a third of landlords invest in property with the aim of generating an income now, but the two must go hand in hand to maximise the return from any buy-to-let investment.”
