House prices in south-east 'grew by 7% in 2007'

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House prices in the south-east of England grew by seven per cent last year, according to new figures.

The research report by property consultancy Knight Frank found that the region's market experienced better capital growth in 2007 than the UK average of five per cent.

Other high-performing areas included Greater London, which grew by four per cent.

Liam Bailey, the head of residential research for Knight Frank, explained why the south-east particularly performed well last year.

He said: "The south-east's housing market continues to outperform the UK average essentially because of the region's economic strength."

A high level of productivity, good employment rates and median earnings that are above the national average were specifically highlighted by the expert as being beneficial to the region.

Recent figures published by Halifax found that house prices in the UK fell by 2.4 per cent in May.

The company's House Price Index found that the standardised average cost of a property now stands at £184,111.

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