[LONDON] Home prices around the Canary Wharf financial district climbed at the fastest pace in London in the year to April as hiring by banks increased demand for housing in and around the city's financial districts.

Values jumped 16.2 per cent in the area from Limehouse to Beckton on the River Thames stretching north to Poplar, Knight Frank LLP said yesterday. Prices increased 2.3 per cent in the district a year earlier. Homes in the City of London financial district and its fringes climbed 15.7 per cent.

"Such strong price growth is built on the improving UK economy and the fact banks are hiring again," said Tom Bill, Knight Frank's head of London research. "When you add in rental income, you will struggle to find a prime residential market in London with a higher total return."