London's property price bubble continues to grow
Cost of prime real estate in the capital's most expensive borough rises to an average £2.2m, as stream of foreign buyers snap up safe havens
Asking prices for homes in London hit a record high this month as values in the exclusive borough of Kensington and Chelsea rose to an average £2.2 million (HK$27.4 million), according to Rightmove.
Values in London rose 4.8 per cent to £478,071, while the average across England and Wales gained 3.5 per cent to £243,168.
"There is a prime central London price bubble that keeps expanding," said Miles Shipside, Rightmove's commercial director. "While there remains a shortage of supply and a stream of foreign buyers looking for safe havens, the bubble will continue to grow."
While Rightmove said the national rebound indicated the market was not performing "as badly as some feared", it noted downward pressure from the difficulties prospective homebuyers continue to have in getting a mortgage. The Bank of England and the government are trying to rectify this with a programme aimed at giving banks cheaper funds in a bid to boost lending.
Nationally, all 10 regions in England and Wales tracked by Rightmove posted monthly price rises. London led the gains, followed by the West Midlands and the Southeast, both of which recorded increases of 3.9 per cent.