House prices surge in October
UK house prices racked up another month of strong gains led by a resurgent property market in London.
Property website Rightmove said house prices rose 2.0% month-on-month in the four weeks to 7 October, pushing the annual rate of inflation to 11.5%, its highest this year.
The average asking price for a UK property now stands at £218,954 from £214,566 a month earlier.
The surge was led by a booming London market with average prices in the Capital rising 19% on the year to £335,507. The change was most marked in Kensington and Chelsea, which saw the average price rise 66% on the year to £999,087.
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In contrast the rise in prices in the north of England continued to slow, up just 2.2% on a year ago to £150,000.
Miles Shipside, Rightmove's commercial director, said, "We have never (before) had a sustained low inflation, low interest rate economy combined with widespread home ownership".
"These unique conditions help push prices higher and higher. However, supply of houses coming onto the market is dropping as prices increase, because fewer home owners can afford to trade up," added Shipside.
