ONS: House prices rise in September
House price annual inflation was 6.4% in England, 1.1% in Wales, 1.1% in Scotland and 10.2% in Northern Ireland. The rises in England 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 while on a seasonally adjusted basis, average house prices increased by 0.8% between August and September 2015.
In September 2015, prices paid by first-time buyers were 4.3% higher on average than in September 2014 and for existing owners prices increased 6.9% for the same period.
Rishi Passi, chief executive of Oblix Capital, said the rise in prices was predominantly driven up by constricted supply and fewer homeowners selling.
He added: “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.”
Alex Gosling, chief executive of HouseSimple.com, said despite the recent rises the market was likely to see a “slight cooling” in price growth in the coming weeks leading up to Christmas.
He added: “But, while demand continues to significantly outstrip supply, and interest rates remain static, we could well see a price spurt at the beginning of 2016. The market desperately needs a boost in new properties being listed if supply is ever to come close to catching up with demand.”