Record levels in increased house prices in London were recorded this month, reinforcing concerns of the Bank of England that this will affect the “launch” of the economy.

In particular, prices rose by 3.3% in April, to an average of 592,763 pounds (997000 U.S. dollars), as recorded by property website ‘Rightmove’. Across England and Wales, prices rose by 3.6%, the highest rate for this time of year since 2002, reaching an all time high at 272,003 pounds.

Rising prices are triggered by the improving economy, low borrowing costs which moves at record levels and incentives by the government.

London holds the lead, as home prices rose over 16% annually, almost double the average UK percentage.

The head of the Bank of England, Mark Carney, stated that the increase in housing prices poses the greatest risk to the economy, and policy-makers must do more to tackle “any excess” if necessary.

source: newmoney.gr