British housing market facing new bubble fears
LONDON (AFP) - Britain's housing market is showing strong signs of recovery largely on the back of surging prices in and around London, fuelling fears of a new property bubble, according to analysts.
The average cost of a home in the capital surged by 10 percent between July and September compared with the third quarter of 2012, British bank and major mortgage provider Nationwide said on Friday.
It added that the average London home, including flats as well as houses, now costs £331,338 (S$671,345) - 8.0 percent higher than in 2007 or during the run-up to the global financial crisis that eventually led to prices crashing.
Across Britain, the average price of a home stands at £170,918 after gaining 4.3 percent in the third quarter on an annual basis, Nationwide said.