Londoners pushing house prices upwards

Londoners in some parts of the city are increasing their asking prices by an average of 7% per month. This is very worrying and will raise some eyebrows in the government as ministers try to convince the market that there is no property bubble.

With the release of data from the Office For National Statistics (ONS) confirming that prices in London rose by 18% last year they face a very challenging task. It may persuade some ministers to push for a withdrawal of some of the government incentives currently being offered to buyers such as the Help To Buy Scheme. The government has already been accused of stoking the housing market in London and this news will throw fuel on a fire that is already ablaze.

The are some real London hotspots such as Brent where the Nationwide has said that prices have risen by 30% in 12 months. Areas such as Camden and Haringey have also seen the level of asking prices rise by over 7% a month! Although house prices in London and the south-east are now higher than their 2007 peak,

Ernst & Young have released data a report that will provide some comfort for the government in which it says we are not in the grip of a property bubble and that it expects house price increases to be more modest in the future. House price increases have rippled out from London but they believe that this will moderate over the next couple of years.