Chart of the week: The rise of the London housing market

House prices chart: London premium over southeast

This is a stark illustration of how London’s housing market is powering ahead of the UK. In the last decade or so, the gulf between the average price in Greater London and that in the South East has widened sharply.

A rapidly growing population and a resilient job market are partly responsible, but in recent years the growing influence of foreign investors, who have come to see London property as a safe haven, has been the key driver of the capital’s premium.

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