£150k to secure a town house

The average price of a house in London is within a whisker of £150,000, the Halifax revealed today.

House hunters are now being advised not to bother looking in most districts unless they earn at least £35,000 a year.

Prices generally rose by 3p in the pound during the July-September quarter, reversing the 2.6 per cent fall in the previous three months.

The annual rate of house price inflation in the London area is now 13.2 per cent compared with a peak of 29 per cent at the end of last year.

Jim McCook, the Halifax's London region general manager, said: "The market looks healthy and conditions are right for continued steady growth. The outlook for the rest of the year is positive.

"But it has been much quieter and it is still a buyer's market. Increased numbers of properties are coming on to the market, and buyers are taking their time in making up their minds."

The Halifax's average house price for Greater London is now £149,250.

Among the outer London boroughs, the average price for a semi-detached home in Barnet is £273,450, in Hillingdon £164,500 and Havering £128,600.The average price of a flat in Fulham is £160,000, "An income of around £35,000 is required in many areas just to start looking," said Mr McCook.