London’s house prices post 8.1% growth rate

10 April 2012

All of London's 33 boroughs bar one — Tower Hamlets — are enjoying rising house prices, according to new analysis.

Prices in the capital rose at an annual pace of 8.1% during the past three months but Your Move owner LSL Property Services put the east London borough's poor performance — prices dipped 2.5% — down to its much higher proportion of flats.

Camden, Barnet and Merton are showing the strongest growth in prices.

London, the South-East and South-West are still seeing average annual price rises of 5% or more but the wider market is cooling, LSL added.

Average prices across the UK fell 0.2% in December, with prices suffering in the North and Wales.

Managing director David Newnes said: "The disparity between the regions is widening. In traditionally high-value areas such as London and the South-East, price growth has been significantly stronger than the national average, and this is likely to continue through 2011.

"Public-sector cuts will have a particularly heavy impact on prices in Northern England and Wales, and this means the value gap could become a chasm as the year goes on."

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