London house prices defy the UK slump | City A.M.

London house prices defy the UK slump | City A.M.

LONDON’S housing market is bucking the trend of falling prices that continues to affect much of the rest of the UK, official data showed yesterday.

Average prices across the country were down 1.4 per cent in January compared to December, leading to an annual increase of just half a per cent.

However, in the capital prices rose by 3.7 per cent compared to the same time last year. Only the east of England recorded a greater jump in prices, rising by four per cent.

While the average UK house price is now £208,552, in London it is now 64 per cent higher, at £342,642, the Department for Communities and Local Government (DCLG) said.

“There is huge inward investment into central, affluent areas of London, and a general lack of stock,” said Robert Bartlett of estate agent Chesterton Humberts.