London house prices rise by a staggering £4,500 a week

  • London
Credit: PA

Asking prices for houses in London are going up by a staggering £4,500 a week, according to a new survey. The figures come after new warnings about the risk posed by the capital's overheating housing market to Britain's economic recovery.

The latest House Price Index compiled by the website Rightmove graphically illustrates the surge in London property values.

  • Asking prices in London rose 16.3% over 12 months compared with 4.9% in the rest of the country

  • In some boroughs the increase exceeded 20%

  • Prices in Tower Hamlets, which includes Canary Wharf, rose by 43%

Credit: PA

The increases will fuel the crisis in affordable housing, caused in part by demand outstripping supply. Bank of England governor Mark Carney warned yesterday another housing bubble could slow the economic recovery.