A stream of positive housing market news has already triggered speculation that the next property bubble is starting to form.
While the housing market is indeed recovering, the headline figures do not tell the whole story. Here are five reasons why talk of a bubble may be premature:
• 1. London is distorting the picture
UK house prices rose by 3.1 per cent to £242,000 in the 12 months to June, according to the Office for National Statistics (ONS), but this was mainly driven by an 8.1 per cent increase in the capital, where the average price reached £425,000.
When you strip out London, the increase in prices across the UK is just 1 per cent, which is considerably below consumer prices index (CPI) inflation