House prices in London have dramatically pulled away from the rest of England and Wales in the last two decades.
Research by Lloyds Bank shows the average house price in London reached £578,381 by the end of 2016. This means the average price of a property in the capital was more than double the England and Wales figure of £278,750.
The price gap has significantly widened in the last two decades. In 1996 the gap was £33,834 - equivalent to a 47% London premium, but that has risen to a £299,631 (or 107%) difference by the end of 2016.
This disparity is even starker when comparing London’s prime central boroughs. Prices in Kensington and Chelsea, the City of Westminster, and the City of London are now 5.72 times the England and Wales average, compared to 3.34 times in 1996.
Private housing stock in London is now worth a total of £1.27 trillion.
Over this 20 year period the fastest price growth was seen in the Borough of Hackney, in north east London. Property prices grew by £530,700 (702%) - from £75,569 in 1996 to £606,269 in 2016.
Across the whole of England and Wales prices increased from £71,433 to £278,750 in the same period, a rise of £207,317 (290%).
Lloyds Bank mortgage director Andrew Mason says: “The last 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.
“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.”