London drives house prices in May

28.06.2007

New figures out today show London's buoyant housing market continued to drive house prices in England and Wales last month.

The average price for a home in the capital stood at £335,658 in May, well ahead of the average of £180,594 for the rest of the country, lifting the monthly House Price Index to 219.6.

That takes the annual increase to 8.9% and up 0.7% on April's average price of £179,935.

"The May data shows the current rate of increase for London house prices remains over 6% per annum greater than that of England and Wales as a whole," said the Land Registry, who is responsible for today's report.

"This recent divergence is the largest variation in two years, when London lagged behind the rest of the country by approximately 6%."

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