House prices are rising faster in Sutton than any other London borough, it emerged this week.

The borough is becoming increasingly popular as soaring central London prices push buyers further out into the suburbs, driving values up by 3.5 per cent last month - an annual rate of more than 40 per cent.

The average price of a Sutton property is now at £225,200. Local estate agent Steve Ash, who co-owns Paul Graham in Wallington, said demand is growing.

He said: "The main draws are the quality of schools in the borough, the great links to London and the huge variety of property. We have definitely seen more demand for housing recently, with a lot more people looking to buy rather than rent.

"London's becoming wider and people are increasingly moving further afield with areas like Wallington proving a popular option."

Richard Donnell, director of research at price monitoring company Hometrack, which compiled the figures, said even those with lots of money were being forced to look out to the suburbs.

The news was welcomed by leader of Sutton Council, Sean Brennan. He said: "With more than 1,500 acres of parks and open spaces, thriving shopping centres, a buoyant local economy, not to mention our high performing schools, Sutton is proving to be the London borough where more and more people want to live.

"The demand for local homes is inevitably pushing up prices, and this situation is likely to continue as word about the attractiveness of Sutton spreads."

But MP for Sutton and Cheam Paul Burstow said that the booming market doesn't spell success for everyone.

"The rising cost of getting on to the property ladder in Sutton is putting huge pressure on families," he said.

"Scraping together enough to pay the mortgage and pay the bills is a growing problem. The fact that house prices are rising so fast is a sign of how popular the area is as a place to live.

"But it also feeds the insatiable appetite of predatory developers who want to squeeze as much housing development as they can onto precious backgarden land."

And MP for Carshalton and Wallington, Tom Brake said while Sutton is a great place to live and one of London's safest boroughs, its attractiveness will put pressure on housing.

He said: "With a shortage of affordable housing and also housing suitable for first-time buyers, developers, the council and housing associations will have to be both imaginative and sensitive in their attempts to increase the supply of housing in the borough."

Neighbouring borough Merton was second in the table, with a rise of 3 per cent, and central postcodes like Kensington and Chelsea lagged behind with a rise of just 2.1 per cent.