Rise in London house prices deepens divide - Business News, Business - The Independent

Rise in London house prices deepens divide - Business News, Business - The Independent

The north-south divide in Britain's housing market looks set to widen further as more evidence emerges that London prices are rising strongly again. But estate agents in other parts of the country are reporting an Easter revival of interest from buyers hoping the ripple will spread from the capital.

Easter remains the traditional start to the property-purchasing season and the sunshine of the past week has seen a surge of potential buyers, according to agents.

But the market is split between people fearing a tighter economic squeeze and those discounting the gloom as it becomes clearer which jobs are at risk. The likely delay in raising mortgage rates and better news on unemployment, inflation and retail sales are cited by agents for the turn in demand.

Most trends in the British housing market start in London; while house prices in all other regions of England fell in the first quarter of this year, the capital's selling prices rose, according to the Halifax bank. Average London prices are still 15 per cent below their 2007 peak, but values in an increasing number of boroughs have set new records.