This is a reversal of the situation in Q1 2015, when house prices in Guernsey were £445,923, up to £37,143 more than the London average of £408,729, and house prices in Jersey were £436,865, up to £28,136 more than the London average.

Jim Coupe, Managing Director, Skipton International, said: “House prices in London rose dramatically from 2013 to 2014, narrowing the gap between London properties that had fallen a lot more in 2008-2009 after the financial crisis than Channel Island properties.

“House prices in Jersey and Guernsey and London converged towards the end of 2015. This is the first time average house prices in both of the Channel Islands have dropped below average house prices in London.”

Skipton International is one of the largest suppliers of residential mortgages in Jersey and Guernsey. The Skipton International House Price Index is the first index of its kind tracking house prices in the Channel Islands, London and the UK.

Mr Coupe added: “Average house prices in the Channel Islands may be slightly lower now than in London, however, recent figures show that transactions in both Jersey and Guernsey are up on last year, which is a good indication.”

House prices in the Channel Islands are still dramatically higher than the UK average of £198,564, with average properties in Jersey costing £244,878 more, and properties in Guernsey £223,767 more than the average house in the UK.