Booming London house prices soar above struggling regions

THE PRICE of houses in the UK saw modest growth of 2.7 per cent between April 2012 and April 2013, but London prices jumped by 7.6 per cent, according to the Office for National Statistics.

The average price of a home in London rose to £398,000, while the equivalent figure for the whole of the country was £235,000. Prices in Scotland and Northern Ireland fell on the previous year.

The figures add to an ongoing trend of London booming above 2007 levels while properties in the UK’s other regions linger below their pre-crash peak prices.

The Council of Mortgage Lenders (CML) also registered a increase in total gross mortgage lending of 21 per cent in the year up to April 2013.

The previous April saw a dearth of purchases as the stamp duty holiday expired.

While lending is still far short of the levels seen a decade ago, the CML’s chief economist Bob Pannell was optimistic about the rise.

“The true underlying position is that April is likely to have been one of the strongest months for lending activity since 2008,” he said yesterday.