But what’s happening in other regions? The capital has always traditionally led the way when it comes to house price growth across the UK, and recent figures have shown that the strength of London’s housing market shows no signs of abating.
Recent figures from the Office for National Statistics (ONS) have revealed that house prices in the capital have shot up by a staggering 9.7% across the year, bringing the average price of a property in London to £438,000 in July.
But while property owners in London have been basking in a buoyant housing market, other regions have seen prices stagnate or plummet over the last 12 months.
Here are just some of the figures which reveal a wide gulf in property prices, and property price growth across the UK.
Some London Boroughs enjoy post-Olympic boom….but not all of them
It may be well over a year since London played host to the Olympic Games, but it seems that Londoners still have cause to celebrate, months after Olympic medals have been handed out.
The ‘Olympic effect’ has meant the neighbouring boroughs of Tower Hamlets and Hackney have seen house prices increase by 5% and 15% respectively.
The borough of Kensington & Chelsea has also seen impressive, above-average increases in house prices, shooting up by 20% over the last three years, despite a subdued economic backdrop.
However, some areas of London have seen property prices head into a downward spiral, bucking the trend for the capital as a whole. In Newham, average house prices have fallen by 0.51% over the last three years.
Barking and Dagenham has fared the worst of all London boroughs, with house prices dipping by 4.5% over the last three years.
Rest of the UK lagging behind
While London’s housing market has continued to remain resilient, despite the UK only just starting to show the green shoots of economic recovery, other regions have seen average house prices tumble.
Scotland led the way for property price deterioration, with house prices falling by 2% in Scotland across the year, according to figures from the Land Registry. This was followed by falls in the North East (-1.3%) and the North West and Wales (both -0.7%).
Even where property price increases were recorded, this was at less than a third of the rate seen in London. The most significant property price increases, outside of London, were recorded in the South East (+2.6%), the East Midlands (+2.4%), the South West (+2.1%), and the West Midlands (+2.0%).
Is the situation reversed when it comes to the rental market?
While London may have the stronghold when it comes to property price growth, it seems that other areas of the UK are more of a sure bet when it comes to the rental market.
A buy-to-let property heat-map published by residential property group Move with Us and property search engine Home.co.uk, revealed that the Nechells area of Birmingham (10.6%) topped the ranking of top ten yielding postal districts in England and Wales.
Birmingham’s lead was followed by New Romney, Greatstone-on-Sea, Littlestone-on-Sea (Kent), where landlords can achieve a rental yield of 10.5%.
The research also provided ranking of top five yielding postal districts in Greater London, none of which managed to achieve a rental yield of above 8%. Lower Edmonton in North London took the top spot with a rental yield of 7.8%, followed by Plaistow, East London at 7.5%.
Commenting on the research findings, Doug Shephard, a director at Home.co.uk, said: “This new study is a route map for investors in search of the highest potential rental yields. Landlords clearly need to be open-minded about where to invest and not simply look in their immediate area.”
2014: Could we see house prices spiral upwards across the whole of the UK?
Global Insight, has predicted that the next year could see a surge in house prices – with the upswing affecting all regions across the UK. The firm, which offers economic forecasts, industry analysis and market intelligence, forecasts that house prices across could climb by 7% in 2014.
“There is a mounting danger that house prices could really take off further out, especially as a shortage of new properties for sale could be a significant factor in some areas,” said Howard Archer, chief UK economist at IHS Global Insight.