"A strong labour market, as well as the prospect of locking into record low mortgage rates, have combined to keep housing activity particularly buoyant."
The average UK house price was £268,000 in October, which is £24,000 higher than this time last year.
Average house prices increased over the year by 9.8% in England, 15.5% in Wales, 11.3% in Scotland, and 10.7% in Northern Ireland.
he East Midlands was the region with the highest annual house price growth, with average prices increasing by 11.7% in the year to October, down from 14.2% in September.
The lowest annual house price growth was in London, where average prices increased by 6.2% over the year, up from 2.8% in September.
Kevin Roberts, director at Legal & General Mortgage Club, commented: “Despite the end of the stamp duty holiday, the market seems to show little sign of cooling down. A strong labour market, as well as the prospect of locking into record low mortgage rates, have combined to keep housing activity particularly buoyant. As the Bank of England seeks to keep a lid on resurgent inflation, borrowers may well be tempted to get a foothold on the property ladder before any rate rise comes into effect.
“Whether the current level of house price growth will extend into the new year, is an uncertain matter. Although the labour market remains secure following the end of government support, inflationary pressures, exacerbated by the emergence of the new Omicron variant, may place household budgets under significant strain. Against this ever-changing backdrop, the value of advice remains paramount."
Emma Cox, sales director at Shawbrook Bank, added: “The word of 2021 will surely be ‘uncertainty’ and the housing market offers nothing but proof of this. Traditionally pinned as a quieter period for the industry, the winter months on this occasion have shown no sign of letting up. Estate agents, brokers and lenders that spend December wrapping up business in good time for another activity resurgence in the New Year, will sadly be left without a period of respite as we gear up to Christmas. Buyers remain intent on striking while the iron is hot, even if this puts prices at a premium.
“With suggestions that the Bank of England’s decision on interest rates may be less significant as the market reacts to a new Covid-19 variant emerging and the government activating ‘Plan B’, it’s too soon to tell what impact inflation will have on buyer affordability. What is clear is that the continued lack of supply in the market, something that cannot be solved overnight, will continue to drive up prices in the best interest of sellers."
