Average United Kingdom house price to hit £300000 in the next three months

If London homes continue appreciating as they have, prices could easily reach £1 million by the end of 2020, Rightmove noted.

And that’s just for a standard house in the capital.

The price of property coming onto the market has hit a new high after the biggest September rise for 13 years.

London asking prices surged to a new all-time high of £620,003 – a figure £4,888 higher than a previous record set in July.

If that level of growth continues, the average London property will cost £1 million by 2020.

Property website Rightmove said the average asking price of a home in the United Kingdom had increased by 0.9% over the month to hit £294,834. The price of properties usually sought by first-time buyers, with two bedrooms or fewer, fell by 1.1 percent.

The average price of a home in the region has fallen by more than 3% – despite a new record national average.

This has left the capital with what it calls a “desperate need” for more homes.

“Demand from those who can afford to buy remains high, and suitable supply remains tight, with the number of properties coming to market down 6% on the same period in 2014”.

New sellers were down 4.9 per cent in the north of England and 7.1 per cent in the south, Rightmove said.

Nationally, house prices climbed 6.4 per cent year-on-year. In Wales, sellers’ asking prices fell by 0.8% month-on-month, taking them to £176,245 on average.

Miles Shipside, director of Rightmove, said: “High demand, lack of suitable supply and increasingly stretched affordability are leading to some extremes in market forces in different sectors and parts of the country”.

In Essex, asking prices are up by 10.9 per cent annually and in Kent they have increased by 10 per cent.

“They are getting proportionately richer than either owners of less desirable homes or those not on the housing ladder at all”.

He says London’s long-term supply/demand imbalance and its continuing appeal to foreign buyers now appear to have overcome the jitters shown earlier this year as a result of stamp duty reform and pre-election mansion tax worries. And at that rate, the average house price will be more than £302,000 by December, Right Move said.