Property prices in England and Wales have jumped by nearly 9 per cent over the last year, according to figures released today.
Statistics from the Land Registry showed that between July and September the average cost of a home rose to £211,453 sterling. It represents an increase of 8.7 per cent on the same period in 2005, when the price of a typical home was recorded at £194,589.
Figures show that only three areas in England and Wales now have average property prices of less than £100,000 - Blaenau Gwent, Kingston upon Hull and Stoke-on-Trent.
At the other end of the scale, the statistics reveal that prices in some parts of London are edging towards the £1 million mark. The average price of property in Kensington and Chelsea is now £942,283, up from £827,180 in the third quarter of 2005.
House price inflation in the capital is riding at over 10 per cent, the figures show, taking the average price of a home in Greater London to £330,838.
The volume of sales has also gone up, according to the figures. Transaction numbers in England and Wales leapt from 261,481 in the summer of 2005 to 305,191 between July and September 2006.
Ed Stansfield, property economist at Capital Economics, said: "Assuming that interest rates do go up tomorrow, we will see it having more of an impact on the property market. "It will not precipitate any crisis but it will have a cooling effect on the market next year.
"It may not be until March or April before a slowdown is seen, but we will see a cooler market in terms of house price inflation and the level of transactions."
PA