London house prices have another year of rapid growth as they climb 9.4 per cent in 2015

Chris Papadopoullos
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House Prices Hit New High In The UK
Demand from buyers is being fuelled by low rates and high employment (Source: Getty)

London house prices climbed 9.4 per cent last year, figure released by the Office for National Statistics this morning show.

While it is some way below 2014's growth of 13.3 per cent, it is still rapidly outpacing earnings.

The strong growth in London and the South helped drive nation-wide house price growth of 6.7 per cent. Prices in the East and South East rose 9.7 per cent and 8.8 per cent, respectively.

In the North East, North West and Yorkshire and the Humber price growth was was much slower, with house price inflation falling short of four per cent in each region.

“There seems to be something of a mismatch within the UK housing market at the minute. Mortgage lending remains healthy, reaching its highest peak in nine years in January. A buy-to-let rush to beat April’s stamp duty changes is part of this story, spurring a notable lending lift," said Richard Sexton, director of chartered surveyors e.surv.

"For these price rises to be fully tackled, supply problems need to be confronted. And crucially, more people need to be encouraged to move. Stamp duty costs, lack of stock and higher prices are deterrents to would be purchasers. As result, people are widening their search areas, and seeking out new potential locations – leading to increased popularity in the East and South East. The appeal of these areas will only grow as those locked out of London look elsewhere."

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