The average house prices in the UK could hit £300,000 in the next three months, according to the property agent Rightmove, after cheap borrowing and poor supply has fuelled another record breaking month for property prices.
Property prices have risen a staggering £2550 on average in September in the biggest September rise since 2002.
Rightmove said the 15 highest priced counties, including Surrey, Hertfordshire and Oxfordshire, have seen price rises double the national average at 1.8 per cent in September as fewer home owners decide to sell their homes. New sellers were down 4.9 per cent in the north of England and 7.1 per cent in the south, Rightmove said.
In London, the average price of a property is forecast to hit £1 million by 2020.
In September, the average asking price in London wass £620,003, up 0.8 per cent on the previous record set in July 2015. The annual rate of increase is now 9.5 per cent or a staggering £53,923 a year because of a lack of supply and increased demand from international investors. If that level of growth continues, the average London property will cost £1 million by 2020.
Read more:
Rent is rising fastest in the East of England
House prices are rising fastest in these ten markets
Miles Shipside, Rightmove director and housing market analyst, said however that there was no indication the 9.5 per cent a year growth was sustainable. "While we are not suggesting that this level of growth can or will be maintained, this extrapolation illustrates the desperate need for more building and more affordable housing in and around the capital," he said.
