Property prices increased by 6.1% in the twelve months to September 2015, according to the latest data released by the Office for National Statistics.
This represented a rise from the 5.5% recorded in August and 5.2% in July, bringing the average house price in the UK to £286,000.
Slowdown
However, this is still much slower than one year ago, when prices were rising by in excess of 12%. What’s more, the results differ from those revealed in a recent survey from the Halifax and the Nationwide respectively, with these surveys indicating prices rose by just 8.6% and 3.8% respectively.[1]
The Office for National Statistics figures indicate that prices rose mostly in Northern Ireland (10.2%) and the East of England (8.4%).
By region, house prices were found to have risen by the following amounts over the course of the year:
| Regional House Prices | ||
| Region | Annual % change | Average house price |
| UK | 6.1% | £286,000 |
| England | 6.4% | £299,000 |
| Wales | 1.1% | £175,000 |
| Scotland | 1.1% | £199,000 |
| Northern Ireland | 10.2% | £162,000 |
| North East England | 1.8% | £158,000 |
| North West | 4.2% | £184,000 |
| Yorks and Humber | 4.6% | £186,000 |
| East Midlands | 3.6% | £196,000 |
| West Midlands | 4.5% | £207,000 |
| East | 8.4% | £309,000 |
| London | 7.2% | £531,000 |
| South East | 7.4% | £359,000 |
| South West | 6% | £263,000 |
Uncertain future
John Hawksworth, chief economist of PricewaterhouseCoopers, noted that house price inflation is now running at twice the pace of average earnings. He said, ‘the ongoing rise in house prices reinforces our projections that, by 2025, only around a quarter of 20-39 year olds in England may be owner occupiers, compared to around three quarters of over-55 year olds.’[1]
In addition, former chairman of RICS, Jeremy Leaf, believes that the housing market is in the process of re-energising itself. Leaf commented that, ‘with the average property price in London now £531,000, unless you earn way above the national average salary, you have precious little hope of being in a position to buy.’[1]
‘Generation Rent is being left out in the cold: they have aspirations to buy but are being pushed further away from their goal,’ he added.[1]
[1] http://www.bbc.co.uk/news/business-34842248