ODPM Index reveals house price rise
The ODPM study also showed house price inflation rose to 3.3 per cent with inflation for London rising 1.1 per cent from August to September to a total of 1.9 per cent.
The study went on to reveal that first-time buyers across the UK were paying an average of £152,643 for a house in September with the inflation rate for first-timers falling from 5.6 per cent in August to 5 per cent. The study attributed this fall to a drop in the average price paid by first-time buyers (by 0.4 per cent) in September, compared to a rise last year of 0.2 per cent.
Regionally, properties in the North East recorded the lowest average house price (£132,678) with properties in the capital accounting for the highest at £269,927. London, the South East, East and South West all recorded house price averages above the UK average.
Milan Khatri, chief economist at the Royal Institution of Chartered Surveyors (RICS), said the market was showing signs of stability with increasing consumer confidence key to the change.
He commented: “Over the summer there had been speculation that house price inflation would eventually turn to zero or even become negative in 2005 which would have damaged consumer confidence. However, these latest statistics from the government, based upon a sample of 50,000 mortgage completions, adds to the evidence that the housing market is gradually firming.”
Khatri went on to add that RICS expected the economy to grow over the next few months, leading to increased housing demand and buyer confidence.