According to UK property site Rightmove, asking prices for homes in London shot up 10.2 percent over the previous month between early September and early October. This is the largest monthly jump that Rightmove has recorded since it began tracking data in 2002.
The dollar amount of the massive increase was an astonishing 50,484 pounds ($82,000 USD). The average price for a property in London is now 544,232 pounds.
Miles Shipside, Rightmove’s director and housing market analyst pointed to overseas investors as contributing to the price surge. The increase can also be attributed to buyers returning to the market after the typical summer lull.
While Rightmove characterized the leap in London home prices as “unsustainable,” it added that there is no risk of a property bubble outside of the capital. Prices in half of the regions that Rightmove covers are flat or falling in annual terms.
Speaking to the BBC, Bank of England Chief Economist Spencer Dale described the UK housing market as thawing after a prolonged period of low activity and price growth.
“A healthy housing market is good for the UK economy. We’re aware that it could over time start to overheat and we’re watching that very carefully, but that’s not where it is at the moment.”