New homes cost soars in London

The cost of buying a new home in London has soared in the last three months of 2007, new figures have shown.

Despite the average cost of a residence in the capital dropping, research from housing website Smartnewhomes.com has revealed that the average new house price jumped by 21.6 per cent from £358,180 in October to £411,981 in December.

Such prices may persuade those wanting to live in London to explore the self build option to acquire a new home for much less.

Commenting on the findings, the chief executive of the site, Dave Bexon said: "London was the only region to see such huge increases", noting that the capital is becoming a "market of its own".

Discussing the cost of housing in the metropolis earlier this week, Fool.co.uk's head of personal finance David Kuo said single buyers there needed to pay "ten times the average salary just to get onto the housing ladder".


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