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London property values hit record high

London property values hit record high

Category: Mortgages

Updated: 09/04/2010
First Published: 09/04/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
House prices in London reached record highs in March, rising above the previous high that was recorded prior to the property market slump.

House buyers looking for a home in the capital last month could have expected to pay £376,605, an increase of £748 above February 2008's figure, according to Academetrics.

In addition, the number of transactions in London in the three months between December 2009 and February this year recorded an 86 per cent increase on the same period a year previously.

The resurgent market in London has been put down to a high demand, a market that has bottomed out and a low interest rate environment.

The rest of England and Wales saw the number of transactions more than double, rising by 51 per cent, although the previous year included January and February 2009, when property purchases were at a record low.

The average price of all property transactions completed in England and Wales last month was 1.1 per cent higher than in February, the eleventh successive month where a rise has been registered.

The rise means that the average amount paid for a property by the end of last month was £227,788.

Annually, the price paid for a home in England and Wales has increased by 13.4 per cent. It represents a sea change from last March, when the annual change showed a figure of -13.1 per cent.

Dr Peter Williams, chairman of Academetrics, said the average price of a home is back to levels last seen in August 2007.

"However, transaction numbers remain relatively low, such that small pockets of demand can exert a higher influence on price than one would see in a more active mortgage market," he added.

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