Record level gap between house prices in London & rest of UK
London house prices have leapt by 18.2% annually, widening the gap between property values in the capital and those in the rest of the UK to the largest levels on record, building society Nationwide has reported.
The number of new houses being built in England "continues to lag far behind" pre-financial crisis levels, according to Nationwide.
The supply of houses is around 40% lower than before the 2008 crisis and that combined with strong interest from overseas investors and a fresh stream of first-time buyers into the market thanks to Help to Buy have been helping to increase property prices - particularly in the capital.
The gap between property values in London and those in the rest of the UK has leapt to the largest levels on record after house prices in the capital leapt by 18.2%, building society Nationwide said.
Prices rose by 9.5% year-on-year across the UK, which is the biggest jump in around four years and takes the typical property value to £180,264, the report said.
Despite property values rising by 0.4% on the previous month across the country, they are still around 3% below their 2007 peak.
However, southern regions in particular are recording "the most rapid" gains in property values with prices in the Outer South East areas up by 10.1% year-on-year, reaching £217,534 on average, while those in the Outer Metropolitan areas rose by 10.6% to around £273,998.
The annual rate of price growth in London is at its strongest since 2003 with the typical house price in the capital at £362,699 - one-fifth (20%) higher than its 2007 peak.