House prices in London have leapt by 25.8% over the past year, with average prices in the capital surpassing £400,000, which is double the average price elsewhere.
The full extent of the soaring London property market has emerged as Nationwide published its latest figures which revealed that prices haven’t risen at such a rapid rate since 1987.
An average London property now costs £400,404, the first time averages have broken the £400,000 barrier, and up an astonishing 30% since 2007.
The fastest rising prices were seen in Lambeth, where prices went up by 37% over one year, and in Camden where they increased by 36%.
Meanwhile Dagenham & Barking saw the lowest price rise, but still managed to see increases of 15%.
Nationwide’s chief economist, Robert Gardner said the figures had been pushed up due to demand for housing and that pressure would continue if new homes were not built.
“While there are encouraging signs that the pace of construction has picked up, the pace of house building is still well below the expected pace of household formation,” he said.