A pre-fabricated bungalow in south London described as "dilapidated" has been sold at auction for almost £1 million, in the latest example of how housing demand is far outstripping supply in Britain and its capital in particular.
Major lender Halifax released new figures Thursday that show U.K. house prices rose by nearly 10 percent in the last year.
In the three months to October 2015, prices were 9.7 percent higher than the same period last year.
Halifax also said that house prices between August and October were 2.8 percent higher than May to July. The average U.K. house price was £205,240.
"Improving economic conditions and household finances, together with sustained low mortgage rates, have boosted housing demand during 2015," Martin Ellis, housing economist for Halifax, said in a release.
"Strengthening demand is filtering through in to higher sales levels although the ongoing shortage of supply is acting as a significant constraint on activity," Ellis added. "The imbalance between supply and demand is likely to persist over the coming months, maintaining upward pressure on house prices."