West London house prices race ahead

The winners and losers in London's property market are revealed today.

New figures show that some homeowners have seen their properties increase in value by almost 20 per cent year on year, despite a jittery housing market.

But others have suffered falls during the same period according to the latest Halifax regional house prices index for last month.

The biggest winners are boroughs in west and south-west London. Kensington & Chelsea, Kingston- upon- Thames and Westminster all enjoyed annual price rises of 18 per cent.

But the residents of Lambeth saw the value of their homes slip by two per cent in the past year.

The figures also show that:

Halifax estate agencies regional manager John Coupe said: "Five rises in interest rates since November 2003 are acting as a brake on price growth.

"The increased cost of borrowing, combined with the increasing difficulties that first-time buyers face getting onto the housing ladder, are expected to exert downward pressure on housing market activity."

Halifax predicts a mini housing boom in east London in anticipation of the 2012 Olympics.

"London's qualification for the second round of the 2012 Olympic bid has created interest with the prospect of improved transport links and street lighting in Forest Gate and Stratford," said Mr Coupe.

"Leyton and Leytonstone are also reaping the benefits of being near Stratford. Their relatively low prices are popular with first-time buyers looking for an easy commute into the city."

While the housing market may be stalling, today's analysis also puts into perspective recent doomladen predictions that prices will fall by up to 30 per cent in the next few years.

Halifax points out that London house prices rose by 39 per cent in the past three years alone - so anyone who bought before 2001 need not worry about negative equity.

And in the past 10 years London house prices rose by 212 per cent, from £78,015 in September 1994 to £243,034 now.