The continuing shortage of homes on the market remains one of the key drivers of house price growth, rather than a particularly resilient market.
Average house prices increased by 5.4% in the year to September 2017, up from 4.8% in August, according to the latest data from the Government’s Office for National Statistics and the Land Registry house price index.
This brought the average UK house price to £226,000 – £11,000 higher than in September 2016 and £1,000 higher than in August.
The main contribution to the increase in UK house prices came from England, where house prices increased by 5.7% over the year to September 2017, with the average price in England now £244,000.
Wales saw house prices increase by 5.3% over the last 12 months to stand at £153,000. In Scotland, the average price increased by 3.1% over the year to stand at £145,000. The average price in Northern Ireland currently stands at £132,000, an increase of 6.0% over the year to Q3 2017.
The North West showed the highest annual growth, with prices increasing by 7.3% in the year to September 2017. This was followed by the South West (6.6%) and the East Midlands (6.4%). The slowest annual growth was in London at 2.5 per cent. This is the 10th consecutive month where the growth in London house prices has remained below the UK average.
Jeff Knight, Director of Marketing at Foundation Home Loans, commented:
“Focus will now be on whether measures to stimulate the housing market are seen through in the Chancellor’s Budget this month, with a rumoured stamp duty cut for first-time buyers as well as housebuilding pledges. As ever, we need to make sure there is a dual focus across the market so the quality and availability in the private rental sector is kept at a high standard for those who are not yet in a position to buy.”
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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