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South-east surge bolsters property prices

House prices rose by 5.7% in the year to August, led by the mini-boom in London and the South East, according to the FT house price index.

House price inflation has hovered around 5.5% since April after accelerating from a low of 3.3% in November 2005.

In London, where the market is strongest house prices have risen 9.6% over the past year.

References: Financial Times 09/09/06 page 3

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