Data from Nationwide prompts shouts of ‘unsustainable’ with annual price inflation at 26 per cent.
UK house prices continued to increase across June by 1 per cent compared with May despite evidence the Mortgage Market Review has been cooling the housing market.
Alexander Gosling, managing director of online estate agents Housesimple.co.uk, said: “The speed of London’s house price rises long since moved from the breathless to the breakneck.
“But if anything shouts ‘unsustainable’, it is annual price inflation of 26 per cent. Such frothy excess hasn’t been seen since the peak of the late 1980s boom.
“With prices now 30 per cent past their 2007 peak and rising by an incredible 7.6 per cent a quarter, the capital’s property market is clearly living in its own supercharged bubble.
“It is too soon to talk of London price rises going off the boil, but the heat may finally be at maximum.”