By Neil Callanan June 2, 2014 5:16 AM


Land prices are soaring in central London, making it more difficult for developers to supply homes that residents can afford and reducing Mayor Boris Johnson's chances of alleviating the city's housing shortage.

Values jumped 25.8 percent in the year through March, compared with a 13.1 percent gain in the city's most desirable neighborhoods, broker Savills Plc said in a report today. Housing plots in the capital now cost 27 percent more than their pre-crash peak in 2007, according to the report.