Average London house prices unexpectedly jumped more than £14,000 in April to their highest levels in more than two years.
Latest data from the Land Registry showed the average cost of a home in the capital rose 2.6% during the month from £552,402 to £566,614 .
That boosted the annual rate of house price inflation in London from 0.9% to 3.3%.
The leap in London prices bucked the national trend in April. Across England as a whole average prices fell 3.7% to £286,327. That dragged the annual rate of house price inflation down from 7% in March to 3.5% in April.
Prices were expected to ease in April after a rush to beat the deadline for new higher stamp duty rates for first time buyers on March 31.
However, the discounted rates, which meant debut buyers paid no stamp duty on purchases up to £425,000, were seen as less of a benefit in London where prices are much higher.
The highest average price ever recorded in London according to the Land Registry measure was the £581,320 reached in August 2022, but since then the London market has flatlined at best. It was last higher than April’s figure in January 2023.
Mortgage rates have fallen over the past year as the Bank of England has steadily reduced its headline interest rate. However, the bank is not expected to cut rates from the current 4.25% level tomorrow.
But north London estate agent and a former RICS residential chairman Jeremy Leaf, said: “It might seem as though this data shows considerable housing market resilience but it doesn't tell the whole story.
"Although the most comprehensive of all the surveys as it includes cash and mortgaged transactions, the results reflect what was happening over the last few months. Since then stock levels have continued to rise, resulting in more balance between supply and demand so softening prices and lengthening transactions.
"Looking forward, values are likely to continue to reduce a little inevitably as interest rates will not fall as far and as fast as many had expected as inflation stays stubbornly high despite today’s small dip.”
The figures show there has been a particularly big rise in prices for new build properties in London over recent months. In February, the latest month for which data is available, the average cost of a new build home in the capital leaped 19.1% to a record £595,659.
