Average UK house price up 7.7% in September, says ONS

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Average UK house prices increased by 7.7 per cent in the year to September, according to the latest ONS statistics.

The rise was equal to the increase of 7.7 per cent in the year to August.

Prices rose 0.2 per cent on a monthly basis in September, compared to 1.3 per cent in the month to August.

The House Price Index found the average house price in the UK was £218,000 in September, £16,000 higher than the same month last year but unchanged from August.

The main contribution to house price growth came from England, the data found, where house prices increased by 8.3 per cent in the year to an average of £234,000.

Wales saw house prices increase by 4.4 per cent over in the year to £146,000, while in Scotland, the average price increased by 3.4 per cent to £143,000.

The average price in Northern Ireland increased by 5.4 per cent over the year and currently stands at £124,000.

The local authority showing the largest annual growth in the year to September 2016 was the Orkney Islands, where prices increased by 20.6 per cent to stand at £144,000. The lowest annual growth was recorded in the City of Aberdeen, where prices fell by 10.3 per cent to stand at £172,000.

One Savings Bank sales and marketing director John Eastgate says: “Although house price growth has cooled in parts of the UK, fundamentals suggest that the long term upward trend will continue, and political uncertainty must not distract policymakers from the underlying structural issues that continue to plague the housing market.

“We’re not expecting a silver bullet at the Autumn Statement, indeed the government has admitted that it will miss its already conservative target of 1 million homes by 2020, but we do hope to see a raft of measures to encourage construction and improve affordability in the housing market.”

On a regional basis, London continues to be the region with the highest average house price at £488,000. The lowest average price continues to be in the North East at £125,000.