While house price rises in the capital city have slowed in the past few months, growth still outstrips every other area of the country.

Andrew Bridges, managing director of estate agents Stirling Ackroyd, has warned that the city’s chronic lack of housing is a huge issue.

“Even as house price growth eased back across the UK, London has come out at the top end of the pack,” he said.

“It speaks volumes about the unique vitality of property in the capital, but also points to problems looming on the horizon.

“The people of London face a problem that politicians have been leaping over themselves to answer. There aren’t enough homes. But our recent research has found that the current rate of planning permissions will only allow for around two-thirds of London’s 40,000 target to be hit.”

Political parties have all suggested new polices to alleviate housing problems this week. The Conservatives have pledged to ramp up the Right to Buy scheme, the Liberal Democrats intend to support renters further while the Labour party has promised to boost building levels.

Bridges said whatever parties win the election, urgent action needs to be taken.

“If the capital can’t provide homes for its people, it doesn’t bode well for the rest of the country’s prospects,” he warned.

“Our research shows that a lack of overall control is the only really catastrophic political outcome for planning approvals in London boroughs. So for the whole UK, a lack of strong decisions and rule by coalition committee could have a similar impact on the vital housing decisions and big infrastructure projects that must be grasped after the general election.”