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(EstateNewsWire.com, December 08, 2012 ) London, U.K -- Housing markets in London and the southeast are pushing up property prices, data from the Office for National Statistics suggest.
The average price for a home in the United Kingdom in September was 233,000 pounds, according to the agency’s monthly index. That was a 1.7% increase over the previous year.
If data from London and the southeast are not factored in, the rise in home prices is 0.8% for the same period. That means London and the southeast play key roles in the country’s housing sector, the Financial Times reports.
Since September 2012, home prices have jumped 5.2% in London and 0.75% in the southeast. The two regions recorded rises of 6.3% and 2.3%, respectively, in August from the year previous.
London home prices have been moving up for several reasons, said Center for Economics and Business Research economist Daniel Solomon. He pointed to foreign investment, regional economics and rising salaries.
“Asian and Middle Eastern investors have invested their money in London property because of the Eurozone crisis and Arab Spring,” Solomon told the Financial Times. “Secondly, relative to other UK regions, wage growth is robust in London and the southeast, supporting the house market.”
Solomon added that the two regions’ economies are not reliant on government spending.
“Public sector spending cuts and employment reductions will exert relatively modest downward pressure on house prices,” he said.
Tighter lending rules have pushed up mortgage costs “significantly,” Solomon said, citing new inflation data. In October, mortgage repayment costs rose 6.6% from a year ago, and in September, they were up 3% from 2011.
Solomon said the price growth might not continue.
“In London, we expect that most of the ‘hot money’ propping up house price growth has already arrived,” he said. “As such expect price growth in the capital to cool next year.”
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Plaza Estates (http://www.plazaestates.co.uk/) is an online resource for London properties. Visitors can find detailed listings of sales and rentals to speed up the process of finding the right property. Property hunters also can get help from experienced estate agents at the website.
Plaza Estates
Customer Service
+44 (0) 20-7724 3100
info@plazaestates.co.uk
Source: EmailWire.Com 
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