According to the UK Land Registry’s House Price Index for September, the annual change in the average house prices totalled 5.3% in September, bringing the average property value in England and Wales to £186,553. Prices were up 1% on August, with London seeing the biggest jump in prices both on an annual and monthly basis, at 9.6% and 1.8%, respectively. The average price of a property in London now stands at £499,997.
The regional data indicates that:
- the region with the most significant annual price increase is London with a movement of 9.6 per cent
- London experienced the greatest monthly rise with a movement of 1.8 per cent
- the North East saw the only annual price decrease with a movement of -0.3 per cent
- the North East also saw the most significant monthly price decrease with a fall of 0.3 per cent
John Eastgate, sales and marketing director of OneSavings Bank, said the figures showed that house prices were bouncing back from what seemed to be a market that was moderating.
“Year-on-year price increases had slowed over the summer, so these numbers reverse that trend and as long as the scales remain heavily tipped toward demand over supply, continued growth is fairly certain in the long term,” he added.
“Little respite then for first-time buyers, who struggle with the need to match higher house prices with larger deposits. Strong mortgage lending figures have so far been supported by year-on-year growth in remortgage activity, so this acceleration in house price inflation may yet further impact on the purchase market.”
While house price activity was buoyant in September, the data showed that the number of property transactions has dropped over the last year. There was an average of 71,766 sales per month during April 2015 to July 2015, a fall on the 78,330 transactions recorded during the same period last year.
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