Soaring prices: A 63 per cent rise is predicted over the next five years
1 August 2014
London house prices are set to rise by 63 per cent over the next six years, an economic think-tank said today.
The average price will leap 16.1 per cent this year to hit £466,000, said the Centre for Economics and Business Research.
It predicted another double-digit rise next year after which the surge will slow down. But by 2018, prices will still be rising 7.2 per cent and the average London home will cost £660,000.
Millions of Londoners are being clobbered by huge hikes in Stamp Duty because of the price surge. A quarter of homebuyers — mostly in London— are now hit by the higher three per cent rate of the tax compared with just a tenth when it was introduced by Gordon Brown in 2003.
