On a seasonally adjusted basis, average house prices increased by 0.8% between September and October 2015, compared with a decrease of 0.1% in average prices during the same period a year earlier.
During the year to October 2015, average house prices increased 7.4% in England (up from 6.4% in the year to September 2015), 1.0% in Wales (down from 1.1%), 0.9% in Scotland (down from 1.1%) and 10.3% in Northern Ireland (up from 10.2%).
In October 2015, prices paid by first-time buyers were 5.9% higher on average than in October 2014. For existing owners, prices increased by 7.4% for the same period.
Average mix-adjusted house prices in October reached £300,000 in England and stood at £174,000 in Wales, £196,000 in Scotland and £158,000 in Northern Ireland.
Annual house price increases in England were driven by an annual increase in the East (10.4%) and the South East (9.5%). The North East had the lowest annual growth of the 9 regions, with prices increasing 2.9% in the year to October 2015 (up from 1.8% in the year to September). London prices increased by 7.7% over the year to October 2015 (up from 7.2% in the year to September 2015).
Excluding London and the South East, UK house prices increased by 5.6% over the year to October 2015, up from 5.0% in the year to September 2015.
Average house prices in 4 of the 9 English regions are now at record levels. House prices in the West Midlands and the South West fell back slightly from the record levels witnessed in September 2015. The North East is the only English region yet to surpass its preeconomic downturn peak (prices in the North East remain 2.5% below the peak of January 2008).
Jeremy Duncombe, Director, Legal & General Mortgage Club, commented:
“Today’s figures from the ONS show a marked month-on-month increase in house prices for October, as lack of supply and rising demand continue to make homeownership more unaffordable. By contrast, recent statistics for the final months of 2015 have shown a dip in the market; however it’s typical to see such a decrease in activity as we approach Christmas. House prices have risen strongly throughout the year, well beyond the level of inflation and wage growth and, without a strong supply-side initiative from the Government, will likely rise well into 2016.
“Recent initiatives such as Help to Buy will work to ease some of the pressures on the housing market in the new year, but more must be done to prevent a continuing rise in unaffordability. The Government must look to a strong supply-side programme by building more homes across the country. Moreover, existing homeowners looking to rightsize must be incentivised through tax breaks and reductions in stamp duty. Through these measures, the Government will go a long way to reduce pressure on the market, unlocking a vast amount of property and preventing the current cycle which is locking more and more people out of the market.”
