Don't be fooled by house price 'rises'

London house prices have returned to their peak, according to the UK's largest property website. The average asking price in the capital now stands at an eye-popping £416,157. But can you trust this data?

London house prices have returned to their peak, according to the UK's largest property website. Rightmove.co.uk says sellers are now asking for an average 0.8% more than they were in November 2007. So the average asking price for London property stands at an eye-popping £416,157. But can you trust this data?

Looking at recent press reports of a "frenzied market" and "foreign buyers on shopping sprees", you'd be forgiven for thinking the boom times are back. But you'd be wrong. Rightmove focuses exclusively on the price a seller wants to achieve. This can be miles above the one actually paid when a sale completes, as James Ferguson points out in his latest Model Investor email.

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Jody Clarke

Jody studied at the University of Limerick and was a senior writer for MoneyWeek. Jody is experienced in interviewing, for example digging into the lives of an ex-M15 agent and quirky business owners who have made millions. Jody’s other areas of expertise include advice on funds, stocks and house prices.