House prices in the U.K.’s capital city are rising by £5 ($7.54) every hour on average, according to analysis by property experts.
Property consultants Surrenden Invest made the claim Monday, crediting statistics released by the U.K.’s Land Registry at the end of October.
The registry revealed that average property prices in London had increased by 9.6 percent annually to £499,997. Housing prices in London are more than double the national property average for England and Wales of £186,553. According to Surrenden Invest, this means that house prices in London are rising £5 every hour.
This rapid rise in U.K. house prices has many analysts contemplating whether an asset bubble is forming. However, Jonathan Stephens, managing director of Surrenden Invest, argues that the price rises are sustainable.
“London is such a demand-driven market that it operates almost entirely independently of anywhere else in the U.K. There’s a lack of physical space for new build properties and those that are being built cannot keep up with the rate at which they are being demanded,” he said in a press release Monday.
“Nor is the issue likely to go away any time soon. In fact, with the huge growth in the U.K.’s population, the situation is set to be exacerbated further still.”
According to the Office for National Statistics (ONS) the U.K. population is expected to increase by 4.4 million in the next 10 years, many of whom will be drawn to London for work and other opportunities.
Data at the end of October from S&P Dow Jones Indices showed that U.S. home prices rose 5.1 percent in August from a year ago, matching analyst expectations.
