"The relative shortage of stock sees house prices in the capital setting new records according to Nationwide. Demand is coming from both home and abroad and is set to continue with the much anticipated return to more seasonable Spring-like weather.
"The measures in the budget - while unlikely to be felt until next year when the mortgage guarantee for second hand homes comes into force in January – will also provide a stimulus to get the housing market moving at a more rapid pace.
"This is essential as it will enable people to move onto the ladder and for those existing owners to move up. This mobility will bring more homes onto the market and free the log jam at the lower end. But for now London house prices are immune to the ramifications of what’s happening in Cyprus and the wider Eurozone.
"There is a seemingly insatiable demand for the best parts of London (Kensington and Chelsea up 12%, Hammersmith and Fulham 13.3% according to land Registry) which demonstrates that London property is regarded as a very safe haven."
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