London house prices have now hit a new record at more than 20% above their pre-crisis peak!
Figures from the Office of National Statistics show that annual house prices in London rose by 12.3% in December to hit an average of £450,000. This is more than twice the 5.5% rate of increase seen across the rest of the UK where the average house price is now £217,000.
Only in London, the South East and East are prices above their 2008 peaks, by 20.3%, 1.9% and 1.4% respectively.
The Bank of England is conscious of rising property prices in London and keen to ensure this doesn’t become a bubble that bursts. It is expected that the BoE will try to dampen this apparent over-exuberance.