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Average London house price is now 30pc higher than 2007 peak
London's house prices are 30 per cent above their pre-crisis peak, according to new data from Nationwide, which also puts the average house price in the capital at around £400,000.
According to Nationwide's House Price Index for June, London house prices have risen over 25 per cent in the last 12 months, as prices nationwide have seen their 14th straight month of increases.
“House prices recorded their fourteenth successive monthly increase in June, rising by one per cent. As a result, the annual pace of price growth picked up to 11.8 per cent from 11.1 per cent the previous month.
“In seasonally adjusted terms house prices reached their 2007 peak in the second quarter, just as UK economic output is likely to have surpassed the high water mark reached before the financial crisis," said Robert Gardner, Nationwide's chief economist.
The report still shows some regional variation. Prices nationally are one per cent above their 2007 zenith and 0.4 per cent below if London prices are excluded.
The report also echoes recent opinions that new restrictions on mortgages won't affect house purchases. The new rule that no more than 15 per cent of mortgages can exceed 4.5 times the borrower's income is unlikely to bite in the near future because so few mortgages approach the cap.