Property prices in Britain have increased by a "phenomenal" £6,137 in July, the largest monthly increase for nearly five years, according to online property firm Rightmove.
The average asking price for a UK home has risen 2.9 per cent, the monthly survey revealed, contributing to a 10.6 per cent year-on-year increase. The swell is the largest since August 2001.
An average home in Britain now costs £217,580, which equates to almost ten times the average salary.
Rightmove reported a modest 0.8 per cent property price rise last month and this latest boom has defied expectations.
"There are always fewer new instructions as we enter the summer months, but this year we have not seen a corresponding fall in the number of buyers," commented Miles Shipside, the property website's commercial director.
"Consequently, sellers are asking for more and getting it, especially in the south," he added.
Prices in the south-east have risen 4.7 per cent in the past month, with first-time buyers still struggling both here and in the capital.
Within the space of a year, London property prices have gone up 13.8 per cent, a "staggering" figure according to Mr Shipside, caused by the fact that "the number of enquiries for London properties keeps increasing" despite a "shortage of supply".
He described the current trend as a "London phenomenon".To read more Property News, click here.
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