Houses priced below £100,000 are now an extinct species in London.
According to research by Jackson-Stops and Staff, all London homes worth less than £120,000 will disappear this year, with properties worth less than £150,000 set to vanish by 2020.
Ninety-three per cent of properties sold in London are now worth over £200,000. The average London house price is £484,700, more than double the national average of £216,750.
The estate agents said that although house prices are falling in the top end of the market, price growth in the middle and lower end of London's housing market will keep house prices robust over the next year.
Robert Butterworth, head of research at Jackson-Stops and Staff, said:
Our research highlights the incredible changes in the London property market over the last 20 years.
Back in 1995, homes valued under £200,000 made up the majority of the market profile. The entire profile of the market has been flipped on its head – a seismic shift that even a betting man would not have put his money on.
The average price of a detached home in London went over the £1m mark this year – but there are huge disparities in price between inner and outer London.