London is exception to house price rule

House prices in London have continued to rise despite the rest of the country seeing growth fall back in November.

That is according to the latest Rightmove house price index, which has revealed that prices fell by 0.7 per cent across England and Wales, in contrast to the 2.7 per cent rise seen in October.

But London prices rose by 2.3 per cent, with the capital's property market remaining robust moving forward due to restricted supply.

"Prices will rise where demand continues to outstrip supply in quality areas close to major conurbations, especially London," confirmed Miles Shipside, commercial director at Rightmove.

"Elements of the Rightmove survey pointed to significantly slowing housing market activity. In particular, the average time needed to sell a house jumped from 85 days to 92 days in
the month to mid-November," commented Howard Archer from Global Insight.

But Mr Archer added that Global Insight believed that the downside for prices would be 'limited' because of supply shortages, population growth and high levels of employment.

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