No let-up in London’s house prices

The Bank of England has put up interest rates by 1.25 per cent over the course of the past year in an effort to cool inflation, but new figures have found that the London luxury property market continued to grow during June.

Estate agent Knight Frank has found that prices in the high end of the market increased by 3.1 per cent during June, compared to the previous month, suggesting that these types of property remain resilient to interest rate hikes.

However, the increases will also be helping to push up the market across the board, meaning first time buyers struggling with debt will find little respite in the near future.

The figures also found that prices increased by a massive 35 per cent compared to the same month in 2006, demonstrating the highest increase in high end property prices since 1979.