London house prices soar in 07 (From Ealing Times)

London house prices soar in 07

1:41pm Tuesday 13th March 2007

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House prices in London soared at the start of the year, official figures have revealed.

The typical cost of a home in London rose to £305,248 in January, compared with an English average of £212,845, according to the Department for Communities and Local Government.

Annual house price inflation was 9.9 per cent for Britain and 11.6 per cent for London.

The highest inflation rate in England was recorded in London. It was 13.2 per cent in January, up from 11.8 per cent in December.

Commenting on the figures, Howard Archer, chief UK and European economist at Global Insight, said: "While higher interest rates and elevated house prices may be starting to increasingly weigh down on potential house buyers, an ongoing shortage of properties in many areas means that pricing power is still significantly in favour of the vendor.

"This is particularly true in London and the south east, where prices are being fuelled by elevated city bonuses as well as a shortage of supply."

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