"Talk of a seasonal correction is premature and, despite suggestions to the contrary, these figures demonstrate that market activity remains positive "
The average UK house price rose to a new record high of £270,000 in September, £28,000 higher than the same time last year.
Average house prices increased over the year by 11.5% in England, 15.4% in Wales, 12.3% in Scotland, and 10.9% in Northern Ireland.
The North West was the region with the highest annual house price growth, with average prices increasing by 16.8% in the year to September, up from 11.6% in August.
The lowest annual growth was in London, where average prices increased by 2.8%, down from 6.7% in August. This represents the lowest annual growth in London since July 2020.
Emma Cox, sales director at Shawbrook Bank, commented: “Talk of a seasonal correction is premature and, despite suggestions to the contrary, these figures demonstrate that market activity remains positive with buyers making moves up and down the chain.
“It is clear that house prices continue to be underpinned by a chronic lack of supply which shows no sign of abating. However, amid speculation that December may see the Bank of England finally decide to pull the trigger, and raise the base rate to combat inflation, we could see a slowdown in demand - particularly at the lower end of the market.
“Moving forward we know that many landlords and property investors are widening their search away from city centres. With the emergence of the so called ‘cocktail belt’, they may want to act swiftly to try and lock-in competitive mortgage rates ahead of any potential base rate rise."
Kevin Roberts, director at Legal & General Mortgage Club, added: “A rush to beat the stamp duty holiday deadline has clearly kept the housing market busy, with low mortgage rates and a desire amongst buyers for homes with more space driving considerable demand. The tapering of the tax break has also encouraged international buyers, in particular, to press ahead with their plans to purchase property. In fact, our data shows that demand for lenders that would consider applicants with a visa remained high in September.
“We should celebrate the resilience of the mortgage market, but it’s equally important that we’re mindful of those with challenging financial circumstances, especially with a rate rise looking increasingly likely."
