The housing market is still booming in the UK, although it is levelling off in London, according to research conducted by property website Rightmove.
The survey said prices outside London have surged 2.3% in the past month. This is compared with a modest 0.2% rise in London.

The report said the average price for a home in the UK had topped £150,000 and was rising at an annual rate of 22%. Terraced and semi-detached houses, particularly in the cheaper parts of the country, were found to be leading the way – up 3.8% and 2.9% respectively, according to the report.

The firm said one of the main reasons for the increase in house prices was a lack of supply of housing.

Rightmove said nervousness at the top end of the market had led to the easing of demand in London. It added that many housebuyers were moving away from London to the Home Counties, especially to commuter and coastal towns.

The figures were published as the National House Building Council announced an increased level of applications to build private and public housing in August.

The figure was up 1% to 13,737 compared with 13,650 in August 2001. Completions for the month fell 4% to 12,560.