House prices rose again in April as market conditions in London improved to levels not seen since 2007.

Property analyst Hometrack reported that prices increased by 0.3% month-on-month across the country, following a similar uplift in March.

It is the third consecutive month to witness a jump in prices, something Richard Donnell, director of research at Hometrack, attributed to "noticeable" shifts in the market.

He pointed out that homeowners who are considering moving are delaying putting their own home up for sale before they find somewhere to buy, therefore keeping the number of homes on the market low and firing up demand.

In addition there is a "marked decline" in people reporting that a lack of mortgage availability is stopping them from buying a house, as the Government's Funding for Lending scheme continues to have a positive effect, creating higher demand for properties.

Introduced last August, it has prompted lenders to slash their rates as they are given access to cheap finance to help borrowers.

London experienced a 0.7% month-on-month rise in house prices in April, driving the overall rate of growth across the whole country.

Demand from new buyers registering with estate agents in the capital has grown three times faster than the rate of homes coming on the market over the last three months, Hometrack said.

The typical proportion of the asking price achieved on property sales in the city now stands at over 95% - a key sign the health of the London market has recovered to levels not seen since the property boom in 2007.

This figure is also over 95% in the South East, compared with 93% in the rest of the country.

London homes now typically take just four-and-a-half weeks to sell, which is around half the national average and also the quickest selling time seen since 2007.

Elsewhere, the next highest levels of growth were seen in Oxfordshire and Cambridgeshire, which recorded increases of 0.5% and 0.4% respectively.

The North East was the only region across England and Wales to see prices dip month-on-month in April, recording a 0.1% decrease.

Prices were flat in the Midlands, the North West and Yorkshire and Humberside, although they increased by 0.1% in East Anglia, the South East and the South West and saw a 0.2% uplift in Wales

Mark Jamieson from Strutt & Parker in Guildford believes the balance between supply and demand is key.

He argues: "With the market 'healing', aligned with various other post recessionary factors including increased confidence, and a resurgent appetite to purchase, the tension between supply and demand is set to increase further. Those who delayed moving home will add to the numbers of new buyers in the market and this will inevitably provide upward pressure on prices."