House price rise up Governor's street

THE Governor of the Bank of England, who this week warned Britain's homeowners on interest rate rises and possible price falls, has seen the value of his own London property soar by up to £75,000 over the past year.

Mervyn King can celebrate his first year in office knowing his Notting Hill two-floor flat could fetch between £700,000 and £725,000 if he hung out the 'for sale' sign today.

King's property is estimated to have risen at least 10% in value since the beginning of July last year, when he formally took on the top job at the central bank.

He took over from Sir Edward George when the Bank's base lending rate was 3.5%, its lowest in nearly half a century, but has since overseen four rate rises of a quarter-point each time.

This week he urged buyers not to overstretch themselves in a housing market which, according to some surveys, has gained about 20% in the past year.

Property agent Knight Frank reckons that King's probable gain on his own London bricks and mortar is around 50% more than the pay rise he received when taking on the top job. He now earns £263,000 a year, up from £213,000 when he was Deputy Governor.

One leading agent familiar with the street in which King lives, said homes there gained added value from access to one of the biggest private gardens in London, saying: 'Most of the houses there are divided into spacious flats and the gardens are enclosed by small trees and hedges.'