Cost of a London property breaks new records

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by Elaine Frei

The Halifax House Price Index for the second quarter of 2007 saw the average price for a property in the capital now stands at £313,122, with house prices rising by 4.9% between April and June continuing to outperform the rest of the UK.

In addition, annual price inflation is at 18.4% in London, ahead of any other region in Britain.

A spokesperson for the Halifax commented that the average homebuyer in the South East and London are faced with a rising tax burden due to the government’s failure to increase the inheritance tax and stamp duty thresholds in accordance with house price inflation.

An economist at the Royal Institution of Chartered Surveyors added that London has been transformed into a property rich state thanks to a strong financial services sector.