Average house prices in London over £300,000

The average house price in London rose by 4.9% in the last quarter, to £313,122.

This means the average house price in the capital is now above the inheritance tax threshold, which is £300,000.

The figures released by the Halifax also showed that house prices are rising fastest in Northern Ireland. Prices there have gone up by 47% in the last year.

Rising house prices mean an increased tax burden for buyers. Halifax economist Tim Crawford said: "The typical house buyer in London and the South East, in particular, faces a rising tax burden due to the government’s continuing failure to increase the inheritance tax and stamp duty thresholds in line with house price inflation."

The threshold for 3% stamp duty is £250,000.

The housing boom in Northern Ireland has been particularly dramatic in the last two years. In 2005 Northern Ireland was the second cheapest region in the UK.

It is now the most expensive region in the UK outside London and the South East.

The survey by the Halifax said the regional boom was due to a buoyant economy, immigration and demand from second-home owners.

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