House prices in Kingston have rocketed by more than a quarter since this time last year, with first-time buyers “desperately” trying to get on the ladder.

Figures released by property website Rightmove show the average house price in the borough is now £851,634 – up from £814,260 last month and from £676,912 last May.

Bank of England boss Mark Carney warned on Sunday that Britain’s booming housing market “posed the biggest risk to financial stability”.

Kingston’s month-on-month rate of price increase, which dipped last month, was 4.6 per cent from April to May.

Gareth King, from Chancellors in Surbiton, who called the market “bonkers” in March, said: “I can’t see it stopping. The first time buyers desperately want to get on the market.

“Even properties that need work at the moment are going for record numbers.”

One two-bed flat off St Mark’s Hill in Surbiton recently sold for 12 per cent over the asking price, Mr King said.

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