Average London home will cost £1m in just four years’ time

Rapid rise in prices means London homes will cost a million by 2020

London house prices are already a world apart from those across the rest of the UK, but the disparity will get worse, according to new research by property website Rightmove.

House prices in London leapt by 2.2% over August alone, as demand for space to live soars in the capital.

The annual growth rate has reached 9.5%, and the current average house price has now hit £620,003 in Greater London.

Rightmove’s Miles Shipside said: “This month’s 2.2% rise more than reverses the seasonal slowdown over the last two months when the average price of property coming to market fell by 0.6%.”

He added: “The back-to-normal service has resulted in new seller asking prices reaching another milestone, a record high.”

Meanwhile, average rents in London have risen by 5.1% on the year, way above the national average of 3.8%.