London house prices hit record high

HOUSE prices were flat month on month in March with values in London hitting a record high, according to data out this morning.

Over a year, house prices rose 0.8 per cent to hit an average price of £164,630, lender Nationwide said.

"London was again the top performing region, with prices up 4.6 per cent compared with the first quarter of 2012," said Nationwide chief economist Robert Gardner.

"London has seen the greatest recovery in prices of any region, and prices are now higher than their 2007 peak at £306,919."

Nationwide said property prices were being supported by robust employment growth, more attractive mortgage rates and a lack of new homes coming on the market.