London spurring on house prices

The average price of a home in the UK is now £224,930, the FT Acadametrics house price index shows, with London again behind the rise in prices.

Earlier this week Halifax reported that the annual house price was in fact just approaching £200,000 for the first time, but the FT index, which claims to be more comprehensive, has found that the higher price is being driven by the 16.8 per cent annual growth rate seen in London.

This compares to a 9.3 per cent rate of change in the UK as a whole. Price growth in August rose from 0.3 per cent to 0.5 per cent, the FT study revealed.

"Regional differences in England are considerable, and stripping London out of the analysis would bring the annual rate of house price inflation down to 7.2 per cent," commented Acadametrics chairman.

"We note the London effect is getting greater over time reflecting the fact that the market there is out of kilter with the rest of England and Wales. The London ‘effect’ is now over two percentage points," Dr Williams added.



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