"Although house price growth has cooled in parts of the UK, fundamentals suggest that the long term upward trend will continue"
The index from the ONS and Land Registry says that "while there is some evidence of a slight recovery in demand on the month, both demand and supply indicators remained somewhat weaker than in 2015 and early 2016".
The East of England is the region which showed the highest annual growth, with prices increasing by 12.1% in the year to September 2016.
Growth in London was second highest at 10.9%, followed by the South East at 9.9%. The lowest annual growth was in the North East, where prices increased by 1.5% over the year.
John Goodall, CEO and co-founder of peer to peer platform Landbay, commented: “Political uncertainty has helped take the edge off house price inflation in the short term, but the unavoidable truth is that we’re simply not building enough homes to meet the nation’s growing need.
“Record low mortgage rates are helping those who have already stumped up a deposit, but this isn’t much relief to aspiring homeowners looking to get their foot on the housing ladder in the coming months. The buy to let market has become a lifeline for Generation Rent, and is growing healthily to meet this demand, but we need an ironclad commitment on house building from policy makers. All eyes then will be on next week’s Autumn Statement to see how the Chancellor plans to address the issue.”
John Eastgate, Sales and Marketing Director of OneSavings Bank, added: “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.
"Buyer demand has rebounded following political uncertainty over the summer to rise for a second consecutive month in October. In contrast, estate agents are reporting fewer available properties on their books, a symptom of the chronic undersupply facing the UK housing market. This will push up prices in the longer-term, hampering affordability, at a time when real term incomes may begin to fall."
