House price rises realise bubble fears, says economist

Economics professor says three-quarters of properties in the UK are overvalued, as Zoopla reports property price growth across the country.

The average UK home has seen its value rise by £10,329 over the past year, or by £28.30 a day, according to figures from property search engine Zoopla.

Gothic style Victorian terraced houses in south London

This follows research from a leading economics professor that around three-quarters of properties in the UK are overvalued, with a 93% probability that London is already in the grip of a house price “bubble”.

“The results raise the risk – although not the certainty – that house prices will fall,” said professor James Mitchell, the head of economic modelling and forecasting at Warwick Business School. “But a bubble it appears to be, and we should all – householders, business people and policymakers alike – be alert to this risk.”

More: The Guardian