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House prices in London have increased for the second month in a row, official figures show today.
An average home in the capital jumped in value by 1.6 per cent last month to £306,963, according to the Land Registry. Prices are now 10.2 per cent lower than they were a year ago.
Most experts expect house prices to continue rising in the short term, but some warn that a second dip could follow. Across England and Wales average property values rose by 1.7 per cent to £155,885 last month - the biggest monthly increase for five years
Ray Boulger, of mortgage broker John Charcol, expects average house prices to rise by five per cent this year.
The Land Registry, which compiles the national house price index, also said the number of homes changing hands during May, the latest month for which these figures are available, increased for the fourth month in a row to 42,699.
The figure was 62 per cent higher than the low reached in January this year, but sales volumes remain well down on their pre-credit-crunch levels.
The British Bankers' Association said this week that the number of mortgages approved for house purchase rose to a 17-month high last month as buyer interest reported earlier in the year translated into purchases.
