The average price of a property in the UK has risen by 0.1% month-on-month to October, according to the latest figures released by the Office of National Statistics.
In addition, the official data shows that prices are up by 6.9% year-on-year. This takes the average price of a property to £217,000, £14,000 higher than in October 2015.
The main instigator to the rise in UK house prices was recorded in England where property values rose by 7.4% during the twelve month period. The average house price in England is now £233,000.
Wales saw prices increase by 4.4% in the year, to hit an average of £147,000. In Scotland, the typical value rose by 4% to stand at £143,000, while in Northern Ireland, the average price is £124,000.
Regionally, London saw the highest average house price of £474,000. The capital was followed by the South East and East of England, where prices stood at £313,00 and £279,000 respectively.
Investors looking to take out landlord insurance on a property might be interested to learn that the East of England has recorded the highest annual growth in house values. Prices here rose by 12.3% in the year to October.
Next came the South East with 9.1%, and London with 7.7%. At the other end of the scale, the lowest annual growth was recorded in the North East, where prices rose by 2.7% over the course of the year.
As a result of rising prices, sales have slowed considerably during the period, down by 20.3% year-on-year in England. In addition, sales were down 11.6% in Wales, by 10.7% in Northern Ireland and by 2.8% in Scotland.
Richard Snook, senior economist at PwC, feels that price growth will fall again in the new year. He notes: ‘Whilst the annual inflation rate remains high, prices have barely moved over the last three months. If this trend continues into 2017, we will see a pronounced drop in growth rates in the New Year. We project that UK house price growth for 2017 could range between 2% and 5%.’
Rob Weaver, director of Investments at property crowdfunding platform Property Partner, said: ‘The predicted property armageddon has simply not happened but Article 50 continues to cast a long shadow. We’ve seen a significant drop in sales post April when the stamp duty hike on second homes and buy to lets kicked in. With phased cuts in mortgage interest tax relief also starting next April, these lower transaction volumes could foreseeably continue in the mid to longer term.’
Alex Gosling, chief executive officer of online estate agents HouseSimple believes that the slowing price growth is not necessarily a bad thing.
Mr Gosling observed: ‘The UK market isn’t just about London anymore, and we are seeing some impressive growth in the regions, particularly in the East and South East of England. Also, considering the seismic political events we have experienced over the past six months, the housing market has proved extremely resilient in the face of some pretty strong economic headwinds.’
‘The exodus of buyers after the European Union vote never materialised, and although buyers are understandably being more cautious, crucially they haven’t deserted the market,’ he concluded.