The ONS data shows that average house prices increased 0.5 per cent between August and September 2014 and by 12.1 per cent in the 12 months to September – a stronger growth than the 11.7 per cent recorded year-on-year in August.
Annual house price increases in England were driven by an annual increase in London of 18.8 per cent and, to a lesser extent, by increases in the East (13.4 per cent) and the South East (11.6 per cent).
In London, prices fell slightly (1.1 per cent) from the record level of August, as the capital moderates, although they remain 37.9 per cent higher than the pre-financial crisis peak recorded in January 2008.
Nonetheless, the rest of the UK is seeing growth too: excluding London and the South East, UK house prices increased by 9.1 per cent in the 12 months to Septembe. The overall picture is one of stability in the run-up to Christmas, when seasonal factors traditionally cause a slowdown.
Stuart Law, CEO at Assetz, says the slowdown is less of a concern this year:
“The latest data from the ONS is another display of strength from the UK property market with all regions showing a strong annual uplift in average property prices. The regions are no longer hanging on the coattails of London but showing decent price growth in their own right. The Eastern region of the UK is well ahead of the South East’s 11.6 per cent at 13.4 per cent and the North West and Midlands are also creeping closer. Mortgage availability remains good and with wage growth finally showing an uplift, the traditional seasonal lull in market activity in the run up to Christmas is looking a lot less unnerving.”
Source: The Movechannel