Top London house prices rise by £1,200 every day

Tim Wallace
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PRIME central London prices are still soaring, according to the Knight Frank index, while the Financial Services Authority (FSA) yesterday revealed mortgage interest rates declined in the third quarter of 2011.

Prime prices in central London rose one per cent in November and 12.6 per cent in the last 12 months, taking the average price to £3.19m – a growth rate of £1,200 per day.

The rise takes prices to a record high, 6.2 per cent above their pre-crisis peak in March 2008 and 39.5 per cent above March 2009’s trough.

Meanwhile, FSA data showed the average interest rate on total balances outstanding fell slightly from 3.51 per cent to 3.47 per cent, while gross advances for house purchases increased by 22 per cent to £26.3bn, the highest level since the second quarter of 2008.

However, new repossessions rose six per cent year on year to 9,670 in the quarter.