House price growth recorded in London

House prices in London are growing, despite the economic slowdown and the recent credit crunch, new figures show.

Data from the latest Chesterton Poll of Polls suggests that house prices in the capital remain high, with residential property prices up by 6.4 per cent between June 2007 and June 2008.

The report, compiled by the Centre for Economics and Business Research (CEBR), shows that annual house prices across England and Wales dipped by 0.8 per cent in June this year, while prices in London eased back just 0.2 per cent.

House prices in England and Wales are currently 1.3 per cent higher than they were in June 2007, standing at £194,193.

Douglas McWilliams, CEBR chief executive, stated: "The housing market is mirroring retail behaviour: while surveys show sentiment at rock bottom, actions show a different story. Consumers are acting as if they expect more buoyant market conditions to resume."

A report from lender Nationwide indicates that the current rate of house price decline appears to be slowing, with values falling by 0.9 per cent in June this year, just half of the fall recorded the previous month.

For those looking to avoid any further house price rises, particularly in and around London, self build may be a cheaper option.