ONS reveals house prices rise 8.4% in year to August

Average UK house prices were up 8.4% in the year to August 2016, according to the latest House Price Index from the Office of National Statistics (ONS).

Published today, the House Price Index reveals that the average UK house price was £219,000 in August 2016.

This equates to an average rise of £17,000 compared to August 2015 and £3,000 compared to the month before.

England experienced the largest increase in house prices, with the rise measured at 9.2% over the year to August 2016. The average price of a house in England is now £236,000.

In Wales, house prices rose by 2.7% over the last 12 months, hitting £145,000. Scotland, meanwhile, saw an increase of 4.3% with the average housing also costing £145,000. In Northern Ireland the average house price is £123,000.

London is still the outlier, with the average house costing £489,000 – by far the highest of all regions. This is followed by the South East where the average price stands at £318,000 and the East of England at £277,000.

The North East is the most affordable place to buy a home, with the average price of a house costing £127,000.

It has been reported that demand and supply was broadly unchanged compared to the previous month.

Ian Thomas, director at LendInvest says:

“August was a tricky month for the housing market, with the uncertainty following the Brexit vote adding to the traditional summer slowdown.

“It has been a feature of this year that the housing market has had to deal with a succession of external factors denting demand. The conclusion of the Help to Buy scheme at the end of 2016 will be another one, which may particularly affect the sale of new-build properties.”

 

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