London house prices nearly double the national average

THE RATE of increase in London house prices has rocketed past the UK average over the past 12 months, rising by 5.2 per cent between June 2012 and June 2013 compared to a national average of 1.9 per cent, according to new figures from the Nationwide house price index.

The average house price in the capital now stands at £318,214 – almost double the £168,941 in the rest of the country.

As a whole, UK house prices are around nine per cent lower than their pre-crisis peak. By comparison, London’s prices have reached an all-time high at five per cent above the pre-crisis level.

Chief UK and European economist for IHS Global Insight Howard Archer says he expects solid but limited increases in house prices over the remainder of 2013, followed by a marked strengthening in 2014.