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Government slammed as house prices jump 26% in London

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Government slammed as house prices jump 26% in London

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Published by Brian Church for 24dash.com in Housing

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House prices rose an amazing 26% in London over the past year, according to the latest figures from Nationwide.

Robert Gardner, Nationwide's chief economist, said: "Annual house price growth accelerated to 26% in London, far outpacing the rest of country, and the highest growth rate since Q3 1987. Prices in the capital are now 30% above their 2007 peak, with the price of a typical London property now in excess of £400,000."

Pressure group Generation Rent, reacting to the Nationwide figures and a Newsnight report that showed an expected 4% dip in building starts 2014-15, accused ministers of "dumbly watching on" and said it was time to "start kissing our global city status goodbye".

Alex Hilton, director of Generation Rent, said: "We thought the government was finally getting it, but they have abjectly failed to do the one thing that would get the economy back on track and build more houses. By dumbly watching on as the building rate slides, ministers are complicit in forcing tens of thousands more families into a lifetime of working for their landlord…It will no longer be possible to attract young workers to the capital and hold on to talented people who will look elsewhere for a cheaper standard of living. We should start kissing our global city status goodbye."

Tom Copley, London Assembly Labour group spokesperson on housing, said: "With house price inflation in London continuing to dwarfing price rises for the rest of the country, this is further evidence that the capital’s housing bubble continues to grow. The disparity between London and the rest of England is now the widest it’s ever been, and shows no sign of narrowing…Boris Johnson has utterly failed Londoners on housing over the past six years of his Mayoralty. A key driver for the soaring property market is the fact that he is currently only building a third of the 62,000 new homes we need in London each year to keep pace with our growing city."

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