The Bank of England has issued its most stern warning yet about the British housing market, as it was reported that around one in fifteen homes in London are currently being sold for £1 million or more.

Sir Jon Cunliffe, deputy governor at the Bank of England, said in a speech in London that to ignore the booming housing market would be dangerous.

This speech came after Nationwide reported that house prices in the UK recorded their biggest annual rise since the start of the economic downturn in 2007.

According to telegraph.co.uk, house prices initially grew by 1.2 per cent in April, forcing house prices up by around 10.9 per cent when compared with a year ago.

Sir Jon is calling for policymakers to implement drastic cooling measures to ensure that the housing market does not derail the country’s economy after making so much headway in the last twelve months.

During his speech, Sir Jon said that homeowners must realise that interest rates are going to have to rise once economic recovery is well under way, ft.com reports.

Cunliffe said: “It is particularly important at present to ensure that the current low levels of interest rates do not mask the likely cost of mortgages and so create more headroom for prices to rise.”