U.K. Gains Supported by London Housing Market Rebound

U.K. house prices extended their longest stretch of gains since before the financial crisis as London rebounded from a slowdown earlier in the year, according to Acadata and LSL Property Services.  The average value of a home in England and Wales rose 0.8 percent to 280,733 pounds ($441,300), the 17th consecutive month of increases, the groups said today. That’s the most since more than two years of gains through October 2007.

The report indicates that London’s priciest districts are regaining momentum after the Bank of England put limits on riskier mortgage lending in June and speculation about the introduction of a so-called mansion tax damped demand. The LSL data contrast with other housing reports, with the Royal Institution of Chartered Surveyors saying yesterday that London’s property market is still weakening.

From a year earlier, U.K. house prices increased 11.3 percent in November. Excluding London and the surrounding southeast, national values climbed 5.7 percent, with the gap between that measure and the overall gain the largest on record.


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