Housing prices in the UK capital have now hit the outer limits and are beyond expectations of just a few months ago, according to Nationwide data.  House prices have increased almost 30% since this time last year and there is no immediate reason to believe this increase will not be taking a time out.  This is the largest increase in prices since the late 1980’s and a spotlight on one of the most expensive property markets in the world.

The Bank of England is now feeling more heat to make a move and potentially increase the interest rate sooner than originally expected.

London stands clearly alone as the most expensive area to live.  The average London property now sits at a record £400,000.

The properties for sale in London are not flying under the radar from foreign investors either.  The capital city has seen interest and subsequent investment from the likes of technology tycoons to Russian behemoths.

Rob Wood with Berenberg commented on the increase in activity within the city limits, saying: "The data signal a rapidly growing economy, one in which house prices are rising very rapidly, employment is rising very rapidly... and interest rates right now are at a record low.”

Wood added: "I think those sort of indicators mean that it would be sensible to begin the process of gradually withdrawing the exceptional monetary stimulus this year."

The Central Bank has placed stricter guidelines on those borrowing for a mortgage loan.  The intent is to cool off the market and put a noose on the possibility of another housing crisis which could lead to further economic issues.  Little seems to be slowing down the increase in housing prices for now.