Record High for London House Prices, reports London Mortgage Broker, London Mortgage Advice Monday, 12th April 2010

According to the latest data compiled by Acadametrics this is £748 higher than the previous record set in February 2008, before the housing market slumped.

The average price of a property in London reached a record £376,605 in March this year.

Widely acknowledged to be one of the most reliable indicators of true price movements, the Acadametrics House Price Index is a weighted index of the other major indices

The latest index chimed exactly with figures from Halifax in calculating that average UK property prices increased by 1.1% in March, although according to Acadametrics this was the 11th consecutive month in which house prices have gained (Halifax recorded a dip in February).

Its compilers believe that the latest London statistics are evidence of the unique dynamics of the London property market, which has led the housing market out of depressions in the past.

According to the index, there were approximately 10,000 more houses sold in February than in January.

It says that average prices have increased by 13.4% in the last year.

However, the estimated level of 45,000 transactions in February is below the average of 51,570 homes sold per month during 2009, with the market remaining subdued.

“The average price of a home rose again in March 2010 and, at £227,788, is back where it was in August 2007, some two and a half years ago.

“The increase of 1.1% is the eleventh month in succession in which prices have increased.

“However transaction numbers remain relatively low such that small pockets of demand can exert a higher influence on price than one would see in a more active market.

“This might also explain some of the differences between this index and mortgage based indices.

“We have noted that in all the high value areas prices have increased but transaction levels have remained fairly constant.

“This would either suggest that prices in these areas have actually increased, or that the higher value properties in these areas have been changing hands more frequently than is the norm - it may well be a combination of the two factors.” Dr Peter Williams, chairman of Acadametrics, said.