The latest Office for National Statistics house price index has revealed that in the year to October 2015, the average price of property in Britain reached a substantial milestone.
According to the Index, UK house prices now average at £300,000, following a rise of 7% annually. This was also a 0.9% increase from the year to September.
On a seasonally adjusted scale, typical house prices in the UK rose by 0.8% between September and October this year, in comparison to a decrease of 0.1% during the same period one year previously.
Country changes
In the year to October 2015, average house prices increased by 7.4% in England, 1% in Wales and 0.9% in Scotland. However, the greatest rise was recorded in Northern Ireland, where prices were up by 10.3%.
What’s more, prices paid by first-time buyers were 5.9% higher than in October 2014. Existing owners saw prices increase by 7.4% over the same amount of time.
Where mix-adjusted house-values in October reached £300,000 in England, they stood at £174,000 in Wales, £196,000 in Scotland and £158,000 in Northern Ireland.
Average UK house prices reach £300,000
English rise
Yearly house price growth in England were driven by an annual increase in the East of (10.4%) and the South East (9.5%). The North East however recorded the lowest yearly rise to October of 2.9%. In the capital, prices increased by 7.7% in the period, up from 7.2% in the previous month.
With the exception of London and the South East, UK house prices rose by 5.6% in the year to October, up from 5% recorded in the year to September.
Average property prices in 4 of the 9 English regions are now at their highest ever level. House prices in the South West and West Midlands fell slightly from their own record levels recorded in the previous month. The North East is the only English region yet to move past its pre downturn level.
Unaffordable
‘Today’s figures from the ONS show a marked month-on-month increase in house prices for October, as lack of supply and rising demand continue to make homeownership more unaffordable,’ remarked Jeremy Duncombe, Director, Legal & General Mortgage Club. ‘By contrast, recent statistics for the final months of 2015 have shown a dip in the market: however it’s typical to see such a decrease in activity as we approach Christmas. House prices have risen strongly throughout the year, well beyond the level of inflation and wage growth and, without a strong supply-side initiative from the Government, will likely rise well into 2016.’
‘Recent initiatives such as Help to Buy will work to ease some of the pressures on the housing market in the new year, but more must be done to prevent a continuing rise in unaffordability. The Government must look to a strong supply-side programme by building more homes across the country. Moreover, existing homeowners looking to rightsize must be incentivised through tax breaks and reductions in stamp duty. Through these measures, the Government will go a long way to reduce pressure on the market, unlocking a vast amount of property and preventing the current cycle which is locking more and more people out of the market,’ he concluded.