BOOMING house prices within Hounslow have recorded the largest price surge of all the London boroughs in the first month of 2003, according to figures released this week, in a property feast that leading market researchers say will continue for the foreseeable future.

According to Hometrack's monthly London Survey, compiled by data from local estate agents, Hounslow recorded an overall average price rise of 0.4 per cent over the month of January, putting it at the top of London's 33 boroughs.

The figures revealed an average monthly price fall of -0.1 per cent London-wide, in the third successive month that house prices have fallen in the capital.

However, the figures suggest that most price falls have been in boroughs with higher than average property values. The average price of the 17 boroughs recording falls is £267,976, compared to the £193,300 for the six boroughs recording rises.

Whereas the City of London (average price £313,200) has seen falls of -2.3 per cent since August last year, Hounslow (average price £180,700) has seen rises of 2.1 per cent.

Speaking to the Times, John Wriglesworth, Hometrack's housing economist and regular contributor to the Financial Mail on Sunday', said there were a number of reasons behind the borough's performance:

The average price in Hounslow is not hugely expensive compared to other areas, and in that respect is an up and coming area.

Hounslow is also not affected too badly by recent job losses in the city, as it is not a primary area for city commuting, and its local employment is good. I would predict that this rise would continue over the short term and that Hounslow will fare well against other London boroughs.''

In the long term, with the possible construction of a third runway at Heathrow, he added the borough would suffer varying consequences:

Obviously the properties nearest to the airport are likely to suffer, but a knock-on effect will be that there will be more work locally, and a buoyant local economy is always good for house prices.''

The news comes as a report by the Halifax bank placed Brentford as number two in its list of The Golden Fifty'' towns where house prices have soared in the last 15 years.

In 1998, the average house price in Brentford was £83,864 compared to an average in 2002 of £290,163 - a rise of 246 per cent.

However, the bank said that it had excluded boroughs known for huge price rises of up to 600 per cent.

January 31, 2003 11:32