The average house price in London rose by 12 per cent to £437,000 in the year to October 2013, according to the Office of National Statistics.
While house prices have inflated across the UK – 5.7 per cent to £257,000 in England, two per cent to £164,000 in Wales, 3.3 per cent to £184,000 in Scotland and 4.8 per cent to £129,000 in Northern Ireland – prices in London are increasing faster than the UK average.
The figures in London and the South East have lifted the average price rise in the UK – where housing inflation hit 3.1 per cent in the 12 months to October 2013, excluding the two fastest-appreciating regions. The average price in the UK excluding these regions is now at £194,000.
Combined, the UK saw house price growth of 5.5 per cent on an annual basis in October 2013, up from 3.8 per cent in September. The average price in the UK as of October was £247,000.
The average price paid by first-time buyers in October 2013 rose by 5.9 per cent on an annual basis, reaching £185,000. Existing homeowners also saw a price rise in the month, with the current average price of £283,000 representing a 5.3 per cent increase from October 2012.
LSL Property Services commercial director David Brown says: “First time buyers are still having to leap higher than ever before to join the property ladder.
“Prices are rising even faster for those buying their first home – leaving many unable to get the property they would have hoped for with their hard-won deposit and mortgage offer.”
LMS chief executive Andy Knee says: “The property market is continuing to accelerate with average prices up 5.5 per cent from a year ago. Surging values are still being driven by the buoyancy of the market in London, however, with peoples’ appetite for property growing and demand for homes increasing, there is increasing pressure on the already limited supply of houses across the UK.
“The drastic shortage of homes will need to be addressed by the Government to prevent prices rising beyond reach.”