The average house in the capital now costs £492,000, compared to £262,000 in the rest of the UK, according to the Office for National Statistics (ONS).
This means that house prices in London boomed to a record annual rate of 20.1 percent in May, with overall growth in the UK climbing to 10.5 percent, official data showed.
The increase in house prices is the strongest since May 2010; but for London it’s the steepest since records began in 2002. This comes despite stricter credit rules under the Mortgage Market Review (MMR) that asks lenders to make sure borrowers can afford their loans if rates increase.
Interest rates are also expected to rise within the next few months – they’ve been at an all-time low of 0.5 percent for over five years.
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