London houses prices 'fastest growing since 1980s'

The average house price in London is now £400,000.
The average house price in London is now £400,000. Credit: PA

London's house prices are growing at the fastest pace since the late 1980s, according to property economist Matthew Pointon.

Mr Pointon, who works for Capital Economics, said mortgage approvals have now been falling for four months in a row.

He warned: "The risk of a damaging house price correction at some point in the next few years is growing."

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Housing prices: National average up 11.8%

House prices lifted by 11.8% year-on-year across the UK in June to reach another new all-time high of £188,903 typically, Nationwide has reported.