London house prices surpass £300,000

Posted: 20 Mar 2006 12:53:39 GMT

            Property News - London house prices surpass £300,000

Residential property in London now costs over £300,000, the latest survey from housing website has shown.

From data representing 70 per cent of the UK market, Rightmove found that London's prices increased at nearly twice the national increase of 0.9 per cent between February and March.

Buyers appear undeterred by the almost universal stamp duty required in the capital – only two per cent of properties in the capital fall under the current threshold of £120,000, compared to 16 per cent across the UK.

"You'd have thought record prices and most buyers being caught by the stamp duty trap would have slowed the market," said Rightmove commercial director Miles Shipside.

"However, the need to put a roof over your head and the lack of other options mean buyers are faced with no other realistic choice than to stretch themselves further if they can."

Mr Shipside predicted that the 0.9 per cent increase, represents a slowdown in growth which may herald a return to the stability briefly enjoyed during last summer.

But with high demand continuing to prop up sustained market growth, the present period of price increases may yet show its durability as the new financial year approaches.

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