London house prices exceed pre-2008 financial crisis by 50%

London house prices has exceeded the pre-2008 financial crisis peak by over 50 percent after a significant increase that started in March 2012, with an average house price at £531,000 and a national average of £299,300.

According to the Business Insider report, the Office for National Statistics reported Tuesday that the latest house price data indicates that property prices continue to grow, increasing by 6.1 percent for nine months this year that ended September. That is an increase from the 5.5 percent growth during the first eight months of the year.

Analysts, such as the Deutsche Bank claims that there is a housing bubble inLondon, where property prices went up 7.2 percent in the first three quarters of the year. However, this growth is smaller compared to Northern Ireland's 10.2 percent increase eat of England's 8.4 percent increase and the south east's 7.4 percent increase.

According to the ONS "An ongoing shortage of supply coupled with strengthening demand may be behind this increase in the growth rate."

In a report by The Telegraph UK, House prices in Cambridge increased by 44.7 percent since it peaked in 2007. This city is where some of the most successful science and technology companies in the UK are located. The average house in this UK city is £388,400, making it the most expensive center outside of Greater London.

Meanwhile, This Is Money has reported that house prices in 20 of the biggest cities in Britain are expected to increase by 10 percent this year due to the fast growth of areas that suffered from a slow recovery after the 2008 crisis. Manchester, Liverpool, and Glasgow are now experiencing their highest yearly house price growth for the first time in eight years.

Research firm Hometrack reported that the 20 biggest cities have an average house price that is 9.4 percent at £229,300, which is higher compared to last year.