London homes in monthly price rise

HOUSE prices in London rose by 0.3 per cent over August on the back of a dwindling supply of homes for sale.<br /><br />Hometrack&rsquo;s national housing survey showed higher price tags in London, the south east and East Anglia, with London&rsquo;s average price rising to &pound;275,300, although year-on- year prices showed a 6.7 per cent fall.<br /><br />Research director Richard Donnell warned that the August increase was due to a shortage of houses for sale, rather than a market recovery.<br /><br />Recent surveys show that over the last four months the London housing market has seen a 2.6 per cent fall in the number of houses for sale, compared to a 34 per cent increase in demand.<br /><br />&ldquo;The market remains in a fragile state,&rdquo; Donnell said.