Live updates

Advertisement

Don't blame the foreigners; build more homes, says Mayor

"London is such a desirable city that its property is treated effectively as another asset class", says Johnson Credit: Stefan Rousseau/PA Wire

The research by Rightmove put much of the increase down to a"frenzy" of activity in parts of inner London as overseasinvestors look for a safe haven to place their cash, which is "leaving theshelves bare".

But in his Telegraph column today Mayor Boris Johnson defended foreign investors, writing:

"It is true that London is now globally recognised as such a desirable city that its property is treated effectively as another asset class – a safe investment in a turbulent world.

It is also true that this phenomenon has helped – I stress helped – to buoy property values and to fuel the anger of professional people who cannot live in districts where their parents grew up, and who cannot see how their kids will ever be able to afford to buy in London.

But the answer is not to try to persecute rich foreign investors with new mansion taxes, or complicated and unenforceable taxes on the tiny proportion of homes they leave empty. The answer to house-price inflation is to build more homes – as we can, on London’s 33 brownfield opportunity areas."

London house prices almost 14% higher than last year

Residential streets in Muswell Hill in north London. Credit: Dominic Lipinski/PA Wire

Prices in London are a whopping 13.8% higher than they were a year ago, compared to 3.8% higher in the rest of the country.

In London's outer boroughs prices the average price of £461,937 is more than twice the average in the rest of England and Wales.

Prime inner London property has reached stratospheric levels - an average of £937,110.

Average price in four London boroughs over £1million

10 Belgrave Square in Central London, which went on sale for £100 million in 2009 Credit: Tim Ireland/PA Archive

Property in four London boroughs now have an average asking price of over £1million.

  • £1,602,980 - City of Westminster saw an increase of 11.9% in October

  • £2,410,474 - Property in Kensington and Chelsea rose by 11.8%

  • £1,092,840 - A house in Hammersmith and Fulham has gone up by 11.8%

  • £1,014,457 - Camden has seen a relatively modest rise of 4.4%

Advertisement

Average asking price nearly £550K

The typical asking price is now £544,232 in London Credit: Tim Ireland/PA Wire

Asking prices in London saw a 10% rise in October, pushing the typical asking price to £544,232, leapfrogging a previous high set in July by more than £28,000.

According to the property website Rightmove, asking prices across the rest of the UK rose more steadily. A 2.8% month on month rise reached an average of £252,418.

House prices in London rise again

London housing Credit: Dominic Lipinski/PA Wire/Press Association Images

Londons housing market continued to show signs of growth during June, as prices hit a three and half year high.

New figures reveal it was the strongest month for house prices since January 2010, mainly fuelled by increasing numbers of prospective buyers returning to the market.

Load more updates