London house price gap at record high, says Nationwide

The house price gap between London and the rest of the UK has risen to a another record high, according to the Nationwide Building Society.

The average home-owner in the capital could now swap their property for three and a half similar homes in the north of England, the survey shows.

In the three months to the end of September, prices in London surged by 10.6%, Nationwide said.

By contrast, prices in north west England and Scotland actually fell.

It follows similar evidence from the Land Registry earlier this week.

In the meantime the annual pace of UK house price growth picked up in September.

Prices grew at an annual rate of 3.8%, compared with 3.2% in August, the building society said.

Property values were 0.5% higher in September compared with the month before, with the average house price now at £195,585.

'New highs'

The average price for a property in London is now 127% more than in the UK as a whole, according to the Nationwide - the highest premium ever recorded.

"The gap between London house prices and the rest of the UK has continued to reach new highs," said Robert Gardner, Nationwide's chief economist.

"The price of a typical home in the capital - £443,399 on our measure - is more than double the UK aggregate."

In Scotland, prices fell by 1.3% in the year to September. In north west England they were down by 0.6%.

The price gap between the north and south of England has also continued to grow, for the 26th consecutive quarter.

The cost of an average home in the south - including the South West and East Anglia - rose by 8% in the year to the end of September.

In northern England - including the Midlands, Yorkshire and Humberside - prices rose by just 1% over the same period.