And by category of property, flats were far and away the biggest riser in the month.
The UK as a whole saw prices rise 1.5 per cent in the month and 3.4 per cent on the year to an average of £167,063.
Nationally, the average flat or maisonette sold in the month went for £161,221, up 5.7 per cent on the year.
The next biggest rise came in terraced properties where prices jumped three per cent to an average of £126,210.
Semi-detached and detached houses both saw a rise of 2.7 per cent to averages of £157,194 and £260,985 respectively.
But in London the increases were much more pronounced.
In the capital the average property cost £393,462, up 1.9 per cent on the month and up 9.3 per cent on the year.
By borough, Hackney saw the biggest rise with prices soaring 12.8 per cent in the year to an average of £474,202.
However, not every part of London saw prices rise – the borough of Newham saw a fall of 2.5 per cent compared with last September. The average price in Newham was £225,738 last month.
Economists warned the rising prices in many areas could pose a risk to economic growth in future, if they get out of hand.
“An improving housing market is supportive to economic activity and growth prospects,” said Howard Archer from IHS Global Insight.
“However, it is vitally important for economic stability and longer-term growth prospects that a new housing price bubble does not emerge.”
He particularly warned that these rises came even before the new Help to Buy mortgage guarantees came into effect, and urged the government and regulators to watch the market closely.