Research for Mayor of London Sadiq Khan shows first time buyers in the capital are losing out to overseas investors acquiring property.
The rise in property values for the East of England are leading the market with new-build homes seeing a 32% price increase in the last year.
Figures from the ONS show the growth in houses prices over the year for new builds is more than double that of existing homes.
House prices for new-build properties have risen by 17.9% for the year, double the rate of existing with highest growth in the South East.
There has been a 20% fall in demand for new-build homes and interest in the London housing market due to the EU Referendum.
Latest data from the ONS indicates London house price growth is the highest for March for the first time this year.
Figures from the CML estimate a 30% rise in mortgage lending over the year as homebuyers seek to complete before the April deadline.