House prices soared by 16.8 per cent in Sutton last year.

The average home in the borough sold for £369,674 in the past 12 months, £53,098 more than the going rate for the previous year, according to figures published by the Land Registry last week.

House prices in Sutton between July 2015 and June 2016 remained cheaper than the London average but outstripped the national average by more than £140,000. The average house price in the UK in June was £229,383, up 9.3% on the previous year.

The average new build in the capital cost £461,789, while a typical existing home was sold for £474,921.

First-time buyers paid £412,474 for their homes in London in June, up 12.5% in a year.

Robin Sanassy, lettings manager at Cubitt and West estate agents in Brighton Road, Sutton, said some sellers had “found it difficult” to shift properties.

He said: “There has not been that much of an increase in demand for buying properties, although we have seen an increase in demand in rental properties. People are more cautious so they have decided to stay on as tenants with the volatile market continuing.

“Several of our people who were looking to sell their properties have, in some cases, found it difficult and have continued as landlords.

“Properties in Sutton are not as cheap as they were two years ago and people will go further afield to find homes and there is a possibility they will look at Redhill and Dorking. But there are places as well in Surrey, like Guildford, that I don’t think will be as affordable as Sutton.”

He added: “We see a real mix of people looking to buy in Sutton. People who are London-based professionals have been priced out and there is a large group who are attracted to the borough due to its outstanding schools, so there is a real mix there. Sutton is also a diverse and multicultural and nice part of Surrey that people don’t necessarily think about at first.

A Department for Communities and Local Government spokesman said: “Since 2010, we have helped more than 300,000 into homeownership through government schemes like Help to Buy and Right to Buy, and the number of first-time buyers is now at its highest level since 2007.

“But we know we need to build more homes. So we will bring a renewed focus to tackling this issue as we build a country that works for everyone, where many more people have the opportunity to own their own home.

“That is why we’ve doubled the housing budget, including investing £8 billion to build 400,000 more affordable homes.”

Are you struggling to buy a home? Contact anders.anglesey@london.newsquest.co.uk, or call 020 8722 6358