The average UK house price increased by 10.6% over the year to August, a figure up from 8.5% annual growth in July, new figures from the Office for National Statistics (ONS) have revealed.
According to the latest UK House Price Index published by the ONS, the average UK house price was £264,000 in August, which is £25,000 higher than the same time last year.
Average house prices increased over the year in England to £281,000 (9.8%), in Wales to £195,000 (12.5%), in Scotland to £181,000 (16.9%) and in Northern Ireland to £153,000 (9.0%).
The ONS confirmed that London continues to be the region with the lowest annual growth (7.5%) for the ninth consecutive month.
Commenting on the figures, Legal & General Mortgage Club director, Kevin Roberts, said that structural factors have continued to drive “unprecedented levels” of buyer activity, including the “race for space” amid remote working, as well as the affordable mortgage rates that are available to borrowers.
Roberts commented: “Whether such levels of demand will persist through Q4, however, is uncertain and seeking the guidance of an experienced adviser will be key as we face into the next few months. Independent mortgage advisers are well-placed to offer bespoke recommendations and inform borrowers of the best deals to help turn this corner.”
Smartr365 CEO, Conor Murphy, added that continued price growth is “unsurprising”, as demand for houses remains higher than the number on offer.
“Aside from pushing budgets and possibly putting buyers off, higher prices make the housing ladder less accessible for lower income borrowers and first-time buyers,” Murphy said. “This comes at a time when energy prices are on the rise and the cost of living is going up, making home ownership difficult for those not already living in their own property.
“That being said, high demand is always a good sign, and we shouldn’t bemoan this – rather, steps must be taken to increase the supply of new, energy-efficient homes to help people get on the ladder.
“As brokers, and as the mortgage industry, we might not be able to control the insulation or heating systems in new builds, but we can play our part in reducing both the environmental and financial impact of the home buying journey.”
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