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London house prices edged closer to £500,000 in November

Emma Haslett
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Homes in the capital rose in price in November (Source: Getty)

The average house price in the capital edged closer to the half a million pound mark in November, rising to £482,000 for the first time.

Figures published this morning by the Office for National Statistics (ONS) showed house prices in the capital jumped 8.1 per cent in the year to November, rising 1.9 per cent month-on-month, from £473,000 in November.

Across the rest of the UK, house prices rose 6.7 per cent over the year, smashing economists' expectations of a 6.3 per cent rise. However, the figure was slightly lower than October's 6.9 per cent rise.

That pushed the average house price to £217,928, the highest figure ever recorded.

Prices in the East of England rose the most, jumping 10.5 per cent during the year, while homes in the South East rose 8.6 per cent. Growth was lowest in the North East, at 3.2 per cent.

Figures published yesterday by Rightmove showed the housing market had a "robust" start to 2017, with prices increasing 0.4 per cent in January from the month before - and 3.2 per cent on the year before.

Average prices in the capital increased 1.4 per cent to £624,953, the figures showed - although the data is based on asking prices, while the ONS looks at prices paid.

Meanwhile, Halifax suggested prices in the UK grew 6.5 per cent in December, to £222.484 - suggesting the much-anticipated post-Brexit vote fall in house prices has yet to transpire.

“If ever there was an illustration of the property market’s stoic resilience, this is it," said Jonathan Hopper, managing director at Garrington Property Finders.

“After dusting itself off from the Brexit shock, the market recovered steadily at the tail end of 2016 as would-be buyers who had held off in the referendum’s immediate aftermath returned to the fold.

"That initial procrastination has now been replaced by cautious optimism in many parts of the UK, and on the front line activity has been brisk during the early weeks of 2017.

“Retailers’ strong sales in the run-up to Christmas suggest that there’s no shortage of consumer confidence. With interest rates still at record lows, many buyers are looking beyond the Brexit headlines at their own finances, and deciding that now is the time to buy before rising property prices erode their purchasing power."

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