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Good News on House Prices: "London house prices set to soar by six per cent"

Link to Evening Standard

"London house prices are set to surge six per cent this year — adding £30,000 to the value of a £500,000 family home, a top estate agent said today.

"The new projection comes on the day official figures showed mortgage lending at its highest level since the banking crisis, as buyers flood back into the market. Experts at Savills said they had ripped up their 'premature' prediction of 'flat' prices in central London after stamp duty rises in last year’s Budget failed to slow down growth.

"But the move will reignite fears that thousands of young people are being priced off the property ladder. Lucian Cook, director of Savills’ residential research, said 'a clear Bank of London effect' was keeping prices higher, as foreign investors and British home-owners alike choose to tie up their money in London bricks and mortar."

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