London house price boom is outstripping 2007 bubble, claim

Prices in London are now 15.9% higher than in November 2007 – but with  house prices rising at a faster rate.

The property website Home says that annual growth in the capital is now well ahead of 2007.

In November 2007, the average London house price was £351,549, up 10.8% on the previous year.

In November 2013, the average London house price is £407,354, up 13.5% on November last year.

A key difference between November 2007 and now is that six years ago, stock for sale was 28.7% up on the previous year, whereas this November, it is 30.5% down.

However, with the crash looming, six years ago stock was flying off the shelves, with an average selling time of 58 days. Today, it is 74 days.

Even so, 74 days is the shortest time on the market since the end of 2007.

Doug Shephard, director at Home, repeated his previous calls for the Help to Buy scheme not to be implemented in London.

He said London simply does not need any stimulation from a “vote winning” scheme which would simply further “elevate already spiralling prices”.

He added: “London continues to astound housing analysts, buyers and vendors alike, and it clearly does not require any further stimulation.

“The fact that the growth is stronger than the boom in 2007 may well be welcomed by vendors but only if they are not also looking to buy a further property in the capital, as the competition is vicious.”