London responsible for property growth

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by Kay Murchie

Statistics released by the Land Registry have established that the average price of a home in London grew to £335,658 in June compared to £180,594 in the rest of England and Wales. This indicates that property sales in London are the force behind the continued growth in house prices across the country.

Consequently, the monthly price index climbed to 219.6 points, a yearly increase of 8.9% and a 0.7% rise on the previous month’s average house price of £179,935.

The Land Registry revealed that the difference between property price growth in London and the growth in the rest of the country is above 6% - the biggest difference in 2 years.

A certain amount of growth was seen throughout England and Wales last month but London experienced the highest annual growth of 15.3%. However, the north-east saw an increase of just under 5% - the lowest in the country.

Prices went up in Wales by 10.3% to an average of £142,552 between May 2006 and May 2007. Fourteen of Wales’ counties experienced a price increase. Neath Port Talbot recorded Wales and England’s highest monthly rise of 2.4%. However Torfaen was the biggest disappointment as prices dropped 2.2%.