Outer London drives house price surge

Posted: 26 Mar 2007 10:43:05 GMT

A new survey has shown that house prices in the UK are rising at their fastest rate since June 2003, with outer London leading the way.

A new survey has shown that house prices in the UK are rising at their fastest rate since June 2003, with outer London leading the way.

The study by researchers Hometrack showed a year-on-year rise of 6.7 per cent across the country, up from February's rate of 6.4 per cent, to an average price of £173,400.

While areas such as Wales remained static and the south-west saw a comparatively small increase in prices of 0.3 per cent, prices in the capital rose by 1.8 per cent in the month, a full percentage point above the national average and the greatest surge in prices in London since July 2002.

In all, 80 per cent of London's 32 boroughs showed an increase in prices.

Richard O'Donnell, director of researching at Hometrack, said the situation represented a "ripple" effect, adding that "house price growth has picked up in London's suburbs" due to a surge in demand combined with supply shortages.

He said only a reversal of these factors could slow down the housing market in the capital.


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