Residential property prices across the UK continue to rise, with the average property in the capital now hitting £500,000.
London house prices saw an annual increase of 9.6% in the year to September, outpacing the annual price increase in England and Wales of 5.3%, according to the latest monthly data from the Land Registry.
The average price of a house in England and Wales now stands at £186,553, compared to £499,997 for London.
London also experienced the greatest monthly increase with a rise of 1.8%.
In contrast, in the North West average annual house prices rose 2.5% to £115,594. The only annual price decrease was in the North East, where prices fell -0.3% to £99,559.
The most expensive sale was in Knightsbridge, London, where a property went for £17.5 million. The cheapest saw a house go for £12,000 in Pendle, Lancashire.
The number of completed house sales in England and Wales fell 4% to 81,696 compared with 84,691 in July 2014.
Meanwhile, the number of repossessions in England and Wales has also dropped dramatically, falling 50% from 943 in July 2014 to 471.
Brian Murphy, head of lending at the Mortgage Advice Bureau, said first-time buyers and those with small deposits were effectively being priced out of living in London.
He said: “Generally, higher house prices are good news for existing homeowners, and not only when they come to sell. Improved housing equity means borrowers are more likely to be able to access the most competitive remortgage deals on the market. However, these benefits aren’t being felt equally across the whole country: the North East saw a monthly and annual fall in house prices.
“Improved mortgage affordability is helping to counter concerns about rising house prices. However, borrowers are very aware that today’s rates won’t last forever: our research shows 96% of homebuyers opted for fixed rates in September in a bid to protect themselves from rising interest rates. Those looking for a new mortgage deal shouldn’t be put off for too long, or risk missing out on significant savings.”
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