Rental values in London grow 3.9%
Figures released by the Land Registry house price index reveal annual growth in London of 13.9%.
And rental values in the capital grew 3.9% in 2015, according to the Office for National Statistics.
A home in London now costs an average of £530,409, compared with just £191,812 in the rest of England and Wales.
The Land Registry – the official body that records the sold price of every property in England and Wales – also reveals the Crossrail effect, with prices in Reading rising 16.1% to £270,146.
Elsewhere in the UK, property prices in south-west England rose 6.2% over 2015 to take the average price of a home there to £220,532 – £46,071 less than homes in south-east England, which rose in value by 10.7%.
In north-east England property prices inched up just 0.2% in 2015, while prices in the north west grew by 2.1% to £114,504.
However, the chief executive of a property finance firm warns the UK’s possible exit from the European Union could affect property prices, but the slowdown of the Chinese economy and a possible rise in interest rates are greater concerns.
Writing in City AM, Oblix Capital’s Rishi Patel says no one knows for sure how a Brexit would affect the UK economy.
In the shorter term, he says the uncertainty as to which way the British public will vote is most likely to cause investment levels in property “to come off the boil”.
If the UK does leave the EU, property values in prime areas of London will be hit the hardest in the short term, but the rest of the UK would feel the pain too.
“Reducing migration levels could also limit the supply of available labour in London as well as affecting the capital’s international culture, which is likely to have a negative impact on the economy and the property industry,” he adds.
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