In the 12 months to September, average house prices increased 6.4% in England (up from 6.0% in the year to August 2015), 1.1% in Wales (up from 0.9%), 1.1% in Scotland (up from -0.6%) and 10.2% in Northern Ireland (up from 5.2%).
House price increases were driven by an annual increase in the East (8.4%) and the South East (7.4%). Excluding London and the South East, UK house prices increased by 5.0% in the 12 months to September 2015.
On a monthly basis, average house prices increased by 0.8% between August and September 2015, compared with an increase of 0.4% in average prices during the same period a year earlier.
In September, average house prices in 4 of the 9 English regions are at record levels. House prices in the North West, Yorkshire and The Humber, the East Midlands and the South East fell back slightly from the record levels witnessed in August 2015. The North East is the only English region yet to surpass its pre-economic downturn peak (prices in the North East remain 2.4% below the peak of January 2008).
Jeremy Duncombe, Director, Legal & General Mortgage Club, commented:
“Property prices picked up in September following the more subdued increases seen during the summer months. Given the increase in demand, and that supply remains limited, we expect house price growth to climb further in the final quarter of the year. The scale of the disparity between house prices in different regions of the country illustrates the need to not only build more homes, but to also ensure that more properties are built of the right size and in the right places. The level of demand clearly varies by location and this is something the country should take into account when planning the construction of new properties. Ultimately, we need to bring supply in line with demand, not just on general terms but also specifically to each area."
Rishi Passi, CEO, Oblix Capital, added:
“House prices continued their steep climb in September, driven up by constricted supply and fewer homeowners selling. Improving economic conditions, rising wages and postponed interest rate rise expectations are all also bringing more buyers to the market, stoking up demand and inflating prices in the lower end of the market. The good news is that rising prices in this band will attract further investment and provide opportunities for developers, especially SMEs and should lead to an increase in attention paid to providing houses for this underserved end of the market.”
