The gap between average London property prices and the rest of England & Wales has more than doubled over two decades, analysis by Lloyds Bank claims.
Using Land Registry data, the lender found prices in London were 47% higher than the national average in 1996 and are now 107% more expensive.
The analysis found that average prices in London were £105,266 in 1996 compared with £71,433 in England and Wales.
As of the end of 2016, average prices in London were £578,381 compared with £278,750 in the rest of the country.
The London borough of Hackney has seen the steepest growth in house prices in the capital over the past 20 years, according to the data, up 702% to £606,269.
This compares to the average increase of almost 450% for London and 290% in England and Wales over the same period.
Andrew Mason, mortgage director of Lloyds Bank, said: “The past 20 years have seen substantial growth in house prices in London, especially in the most affluent areas of the City.
“The boom years between 1996 and 2008 saw the gap widening between house prices at the top end of the market and those in London’s inner and outer boroughs, creating two distinct markets – ‘prime’ and ‘mainstream’.
“However, whilst those boroughs at the top end have pulled away considerably from the rest of London and the country in terms of house prices, improved transport links to the city from the outer boroughs and the 2012 Olympic Games has meant that the boroughs directly benefitting from these have seen house price growth outpace the prime areas in recent years.”
|Mortgages - Find cheapest. Rates from 0.98%. 1st time buyers, remortgages, self-employed, adverse & CCJ, Landlord buy to let. Compare now|
|Sell or Let Property FREE on Houseladder 0% no fees. Free property advertising. List 1 to 1000 properties to millions of buyers and tenants. Upgrade to a Premium advert for only £30 and sell or let your property FASTER! Create Ad|
|Make Money - Earn £250 to £2000+ per month part time. Get paid every month for work you do once. Work from home. Flexible hours. Free training. No experience needed. Major UK PLC company. Find out how >>|
|How To Save Property Tax - Updated Sept 2017 “How To Save Property Tax” is widely regarded as THE tax bible for property investors. The 21st edition has just been published (Sept 2017) and is completely up to date. Read now|