UK house price growth is in overdrive currently and it could lead to a housing bubble in the eyes of many close to the market. Recent data indicates house price growth has sped up three months running with no signs of slowing down. The buy to let market is expected to remain in high gear through April of next year, as new taxes will be levied against buyers as part of a new government plan outlined by George Osborne in the fall statement.

Average house price of a home anywhere in the UK now sits at £287,000. This figure has been reached due to a rise of 0.8% during the month of October, according to the Office for National Statistics. August began the rash of increases in price growth at 5.5% for the year. This was followed by September which saw 6.1%, and then October brought it up to 7%.

House prices are being forced higher due in part to the new stamp duty which will apply to buy to let purchases beginning next April.

Jeremy Leaf, a former chairman at the Royal Institution of Chartered Surveyors (Rics) and a north London estate agent, commented on the latest data, saying: “These figures reinforce the findings of other recent surveys, demonstrating that the housing market is heading towards a boom and bust that the government is partly responsible for but said it wanted to avoid.”

Howard Archer of IHS Global Insight believes the short term will see higher prices in the 6 to 7% range which is around 1% higher than he predicted in July of this year. He also believes the shortage of available properties for sale is also placing upward pressure on house prices overall.