We’ll admit that it’s not the most likely event in the world, but if you live in London and your rent hasn’t sky-rocketed over the last 12 months, you may have been spared the pain by a benevolent landlord satisfied that the capital value of his property has soared by a breathtaking £80,000.
New data from the Office for National Statistics (ONS) showed that the annual property price increase in the capital stood at 17%.
Across the country as a whole, house prices are up 8%, but exclude London and the South East, and the hike falls to a more modest 4.7%.
The steep rises have already rattled the Bank of England governor Mark Carney, and PM David Cameron told BBC Radio 4 this morning that he would consider changes to the Help to Buy scheme if Mr Carney recommended reining it in.
The fear is that the scheme, devised to help potential buyers who might be able to afford regular mortgage payments but are unable to raise a five figure deposit, is helping to drive prices too high.
That said, the PM reckoned the scheme was “well-targeted” and had “helped tens of thousands of people get on the housing ladder and to have mortgages”.
In the meantime, you’ll know what to tell any greedy landlords looking for a rent rise to put the icing on their capital appreciation. Something like, “Be glad you’re not a property investor in Northern Ireland (where values are up only 0.3%) or Scotland (up 0.8%).”
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