London drives 11th month of house price growth

House prices rose for the 11th month in a row in September, figures from the Royal Institution of Chartered Surveyors (Rics) show.

House price acceleration was at its fastest rate in four years, with Rics estate agents reporting that the price rises were being driven by a combination of would-be buyers returning to the market and a limited amount of property available.

Unsurprisingly London and the south-east led the house price surge, with prices in the capital rising at their fastest rate since January 2001 and reports of gazumping taking place. The north-west and East Anglia also saw house prices rise sharply, while Wales, Yorkshire and Humberside saw prices rising too.

Rics spokesman Jeremy Leaf said that greater economic activity had caused a ripple effect in house prices to spread across the country.

Sellers were in a great position to benefit in the short term due to property stocks being low and buyer enquiries rising, he said.

However, continual rises in house prices would make it different for the Bank of England to leave interest rates as they are, he added, unless the economy shows unexpected weakness