UK house prices increased by 6.1% in the year to September 2015, up from 5.5% in the year to August 2015, according to the Office for National Statistics (ONS).
The average UK ‘mix-adjusted’ house price in September 2015 was £286,000, the ONS said.
On a seasonally adjusted basis, average house prices increased by 0.8% between August and September 2015. The East and South East saw the largest annual increases, by 8.4% and 7.4% respectively.
Meanwhile, London prices increased by 7.2% over the year to September 2015, up from 5.4% in the year to August 2015.
Richard Sexton, director of e.surv chartered surveyors, said: “A benign lending environment is the antidote to first-time buyer’s challenges. Reassuringly, October recorded the highest total lending levels for seven years, meaning rising prices aren’t dissuading homebuyers. As prices continue to rise, the dream of owning a home can look further away than ever – but there is support available including the launch of next month’s Help to Buy ISA. With low inflation thought to be pushing back any interest rate changes, the future looks brighter for first-time buyers.
“The East of the country, boosted by its location as a commuter haven, is now challenging even the capital’s house price growth. As the high prices of London persist, buyers are forced to look elsewhere. Strong employment hubs such as Cambridge are making the East an attractive alternative to Greater London and injecting a new energy into the area’s housing market.”
