Average London house price hits £1.6m, as prices soar by 12 per cent

Homes in London now cost double that in the rest of the country

Homes in London cost twice as much as properties in the rest of England and Wales, according to new figures released as the capital’s brewing housing bubble shows no sign of calming.

An average house in central London is worth over £1.64 million, up from £1.47 million last year, according the Land Registry.

House prices in the famously affluent ‘prime London’ boroughs of Kensington and Chelsea, and Westminster, rose by 11.29 per cent in the past year.

Overall, a house in London will set a buyer back over half a million pounds, while a residential property in Greater London costs 12 per cent more than last year - at £533,489 between April and June.

But buyers are apparently not put off by the astronomical-seeming costs, as sales across England and Wales are up by 20 per cent to their highest level since the 2007 financial crash, the Mail Online reported.

A home in London remains a highly lucrative investment, as those who bought a property in ‘prime London’ this time last year would have made a profit of £166,216.

London live: London house prices continue to rise

Meanwhile, home owners across the capital as a whole saw their homes jump £57,160 in value over the past year - from £476,000 to £533,000. But in the rest of the country, the average house price increase was relatively low in comparison, at £14,312, as the average house price in England and Wales rose by 5.9 per cent compared with June last year.  

A lack of available schools in the capital, a sense that much of prime London property is now nothing more than a safe deposit box for the world’s super-rich, and a fear that prices could soon peak has seen many Londoners flee the capital to make the most of their profits elsewhere.

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