The yawning property gap across England and Wales has highlighted again as figures showed house prices surging nearly 9% in London while values are still on the slide in the North.
London property in October was 8.7% more expensive than in October 2012, taking the average price in the capital to £390,720, according to the Land Registry, the Daily Mail reports.
Meanwhile, house prices in the North West and North East of England dropped by 0.7% and 0.8% respectively - in the latter case helped by a drastic 3.1% drop on the previous month.
Property values across England and Wales were up 3.1% on October last year, taking the average price to £165,515, in the biggest annual uplift seen since October 2010.
The Land Registry data throws into relief the tricky balancing act facing the Bank of England and the Chancellor as they try to kickstart the housing market outside the South East while pre-empting a property bubble forming in and around London.
Official support for the housing market was scaled back yesterday as the Treasury and Bank of England announced the Funding for Lending scheme will stop providing new cheap mortgage funding from next year.
The Bank's scheme has driven mortgage rates to record lows while decimating returns on savings, but the move to stop extra funding being taken out marks a potential beginning of the end for pumping cheap cash to consumers.
The average house price in England and Wales actually edged down by 0.2% in October from September, the Land Registry said, marking the first drop seen in seven months, which could be down to a lull ahead of the premature Help to Buy launch.
Wales saw the biggest month-on-month increase in prices, with a 2.4% rise over September, pushing the average values to £117,097.
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