London's runaway property market show no signs of slowing down with prices surging 12.4 per cent to an average of £414,490 in the year to March.
The relentless rise in prices means that homeowners have seen the value of their properties go up by an average of almost £49,000 in the past 12 months, according to figures from the Land Registry.
And there are indications that the impact of the London bubble is rippling out to the rest of the country with three other regions — the east, south-west and north-east — experiencing fast growth during March.
Prices in London are being forced upwards by a chronic shortage of homes for sale and continuing strong demand from foreign buyers and investors. First-time buyers have also been encouraged by into the market by record low interest rates.
Nicholas Ayre, managing director of home buying agency Home Fusion, said: “The capital’s housing market doesn’t appear to be slowing down any time soon. Pressure to buy is still considerable with many buyers competing via open houses and sealed bids for a limited amount of stock.
“The real challenge is finding a property you can afford to buy and being able to secure it in the face of stiff competition before prices move higher still.”
The hottest local market in London is Waltham Forest, where prices are up 23.5 per cent in a year to an average of £315,102.
Prices are rising at more than 20 per cent a year in three other boroughs: Lambeth (21.9 per cent), Southwark (21.2 per cent) and Islington (20.6 per cent).
The number of properties sold in London for more than £1 million in January was up 67 per cent at 712.
The number of repossessions in the capital continued to fall with just 117 in January, down 40 per cent on 2013.
