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House price up 5.4%in September, says ONS

UK house prices increased by 5.4 per cent in the year to September, the latest statistics from the government’s Office for National Statistics show.

The figure is an increase from the 4.8 per cent rise in the year to August 2017.

Month-on-month, house prices increased 0.4 per cent between August and September this year.

The latest average recorded house price was £226,000 in September, compared to the £215,000 average in the same month last year.

On a regional basis, the largest annual growth was in the North West at 7.3 per cent for September, up from 5 per cent in August 2017.

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.

Legal and General Mortgage Club director Jeremy Duncombe says:

“Limited stock and high demand continues to drive annual house price growth, and it’s only making homeownership a more exclusive club. With house prices estimated at 7.6 times the average annual salary, for the majority of would-be first-time buyers the prospect of affording their own home is not a near possibility, leaving them forced to rent for longer to save a deposit.

“With housing set to be a key area for the Autumn Budget, we hope to see a real push from the Government to address the chronic issues in the market. We have already seen some steps in this direction, with an extra £10bn for the Help to Buy Scheme, but the underlying issue of supply remains. We’ve had years of promises and announcements, now is the time for the Government to really get started and take the action that is necessary to lead our housing market into a fairer future.”

Trussle chief executive Ishaan Malhi says: “Many people expressed concern for the housing market after Brexit, but prices are 5.4 per cent higher than they were this time last year. That’s an £11,000 increase on the average UK home. With wages growing just 2.2 per cent in the last 12 months, the growing challenge facing first time buyers is plain to see.

“The Budget is now a little over a week away and rumours are already swirling about some government support for first time buyers. If Phillip Hammond proposes to boost house building, and make homeownership more affordable for young people, it will be a welcome move for those currently priced out of the market. The mortgage sector is slowly innovating to make the process of buying a home less stressful and time consuming, but until more housing supply brings down the cost of property, homeownership will remain a pipe dream for some.”

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