Some areas of London have seen house prices shoot up 16 per cent over the last 12 months, the latest Nationwide house price index reveals.
UK house prices increased by 0.9 per cent in September and were 5 per cent higher than September 2012, with the average UK house price now standing at £170,918.
On a quarterly basis London was once again the most expensive region in the UK, with property prices growing year-on-year by 10 per cent in the third quarter, with the average house price in the capital now at £331,338 – surpassing the previous record peak in 2007.
There are still vast divides between certain areas in London, with houses in Lambeth appreciating 16 per cent since last year to £436,444 compared with Redbridge which saw no growth over the last 12 months and where average property price remains £287,367.
The least expensive region to purchase a house in the UK is Northern Ireland where the average price is now £108,671 – up just 0.9 per cent from last year.
Nationwide chief economist Robert Gardner says: “Amongst the English regions, the South of England and the Midlands continued to outperform the North. Outside of London, East Anglia was the strongest performing region with annual price growth of 6.6 per cent, whilst the North was the weakest UK region with prices up 0.2 per cent over the year.”
Capital Economics property economist Matthew Pointon says that with conditions in the UK’s housing market still tight, September’s 0.9 per cent increase was a strong result.
But he says: “The good news is that, in response to growing concerns about the pace of these gains, the Chancellor has given the Bank of England more powers to restrict the mortgage guarantee aspect of the Help to Buy scheme.”