House price growth rose by 1.3% between Q2 and Q3, with the standardised UK property price now £224,201, the Halifax House Price Index administered by IHS Markit has shown.
The quarterly upturn in property prices was faster than in Q2 at 0.9% and is the strongest since the end of 2016, whilst the standardised house price has risen by £62,991 over the past five years.
The South East joins London for the first time in three-and-a-half years in recording softer annual house price growth than the rest of the UK, whilst property prices in the Midlands and Northern England see strong annual rates.
House prices rose in Wales however stagnated in Scotland and fell in Northern Ireland, but London was the weakest performing English region with a growth of just 2.6%.
Tim Moore, senior economist at IHS Markit, said: “The latest Halifax HPI data suggests a slight recovery in UK housing market momentum this summer, but the regional figures are a mixed bag.
“Regional figures for Q3 show the North-South divide flipping on its head; annual price growth in London and the South East has slipped well behind Northern England, and indeed the Midlands.
“The third quarter of 2017 marks exactly a decade since the peak level of UK property prices prior to the global financial crisis.
“London was the fastest to recover, exceeding its high watermark in Q1 2014, followed six months later by the South East. There remain four areas of the UK with property prices below the Q3 2007 peak, with Northern Ireland the furthest behind in cash terms.”
Despite seeing muted growth, the South East and London continue to have the highest standard house prices, where in the capital the standard price has reached £451,328 and in the South East it is £343,159.
In cash terms, at £224,201 the UK-wide figure is now 11.8% above the pre-crisis peak seen in 2007.