London house prices rocket 5.7% in last year

Capital bucks the national trend as house prices soar

London house prices have soared to new levels after a 5.7% increase over the last twelve months. First time buyers have to deal with an average house price of £304,000.

The news comes as the Office for National Statistics release their latest data on the housing market. House prices remained relatively stable across most of the UK while London prices bucked the trend. The cost of new dwellings in London has soared by nearly £50,000 to a level of £301,000.

Annual house prices fell by 1.3% in the North West and 0.5% in the North East. Outside of London and the South East, UK house prices increased by 0.6% in the 12 months to July 2012

By contrast, property analysts at Rightmove reported that house prices rose by 0.3% in London.

Miles Shipside, housing market analyst at Rightmove, said:

“The state of the housing market is little different now to this time last year and prices have stagnated as neither buyers nor sellers have been forced to change their behaviours in sufficient quantities to stimulate greater activity.”

“The global squeeze in the credit markets has seriously affected the man on the street’s access to mortgage financing, permanently hampering their ability to finance their journey onto and up the housing ladder” he added.