House prices to continue surge as bubble fears grow

House prices to continue surge as bubble fears grow

House prices are set to increase far faster than first thought, according to Britain’s biggest online property site.

Rightmove, which advertises thousands of properties across the UK, said it was uprating its forecast for annual house price inflation from 4.5 per cent to 6 per cent with a vigorous autumn in the UK property market expected. 

The decision will add further weight to the argument of Business Secretary Vince Cable that the UK property market could be in danger of overheating and that interest rates may have to rise sooner rather than later.