UK House Prices Situation: Strong

UK House Prices Forecast: Staying high

Britain's strong housing market is continuing to grow, says a new report from property website Rightmove, released this week. UK house prices have grown by an average of 11.5% over the last year, but this growth has been heavily skewed towards certain areas of the country.

While the north of England has seen an average growth of only 2%, London's most exclusive borough, Kensington and Chelsea, as seen a dizzying rise of 66% over the last year, with the average house price now a staggering £999,087. London as a whole has seen strong growth, with an average increase of 19%, as have areas such as Exmoor, where the average house price has risen to £366,159, with an influx of wealthy buyers from London and the south-east putting upwards pressure on prices.

In a further sign that the strength of the housing market is set to continue, Deputy Governor of the Bank of England Rachel Lomax has said in an interview for the Daily Mail that she believes the economy is healthy and that despite record housing prices, the country is not heading into a boom and bust scenario.