London house prices buck the national trend

House prices across the UK have seen modest increases over the last year, and in some regions they have fallen. But in London things are looking very different.

According to the latest figures from the Office for National Statistics, prices for property across the whole of the UK rose by 2.3 per cent in the 12 months to June 2012.

In England they increased by 2.8 per cent, while in Wales they remained unchanged, in Scotland they fell by 1.0 per cent and in Northern Ireland they plummeted 11.9 per cent.

At first glance it seems England as a whole has fared much better than these other UK nations, but on closer inspection is seems there is one region that's propping up the market.

house prices in London rose by 6.5 per cent during the period, offsetting the 1.3 per cent decline seen in the North East of the country and bumping up the overall average.

Most other regions, including the North West, the East Midlands and the West Midlands failed to register growth above 2.0 per cent.

Indeed, London was miles ahead of the South West, which saw the second biggest increase in prices at 2.3 per cent over the 12 months.

These latest increases in the capital could provide a further boost to lettings in London. The market is already booming as first-time buyers struggle to get a foot on the property ladder.

The average cost of a home in London now stands at £392,000, which is £161,000 higher than the national average of £231,000 and £248,000 higher than properties in the North East.

Data from the Royal Institution of Chartered Surveyors also suggests that London is bucking a Nationwide trend for lower house price growth.

A balance of 24 per cent more surveyors reported falling rather than rising prices across the UK last month. London was the only region where more surveyors reported price rises than falls.

Posted by Chris Price
 

Published 15th August, 2012

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