UK house prices soar 5.4 per cent in a year with regions OUTSIDE London driving surge

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British HousesGETTY

Details released by the Office for National Statistics today showed the average UK company price rose to £226,000 in September, up £11,000 on a year earlier. 

It pictures annual growth of 5.4 per cent and a 0.4 per cent increase from August, when the general house price stood at £225,956. 

Prices in England drove the surge, take up arm 5.7 per cent over the year compared to 3.1 per cent in Scotland and 5.3 per cent in Wales. Presumes for Northern Ireland — which are calculated differently — showed growth of 3 per cent over and beyond the third quarter of the year.

The North West enjoyed the strongest bawl out of house price growth, up 7.3 per cent over the year to an customarily of £160,951, followed by the South West and East Midlands, up 6.6 per cent and 6.4 per cent at £252,737 and £184,399 severally. 

The London housing market continued to cool — with prices in-fact drop-off 0.2 per cent between August and September and showing the slowest assess of annual growth across the UK at 2.5 per cent. With the average London old folks costing £483,568, however, the capital remains by far the most expensive ready to live in the country.

Figures from UK Finance released today also played, on a year-on-year basis, mortgage lending also increased in September — exceptionally remortgaging – suggesting homeowners rushed to secure low interest rates first the Bank of England hiked the base rate in November.

First-time customers borrowed £5.1 billion in September, 4 per cent higher than in September 2016, while mortgages to assign time buyers rose 6 per cent to £6.9 billion.

However, remortgage operation spiked most sharply — rising 16 per cent on a year ago to £6.4 billion. Buy-to-let contributing increased by 4 per cent despite the withdrawal of tax incentives dampening growth in the superstore.

For sale signsGETTY

On a month-on-month basis lending fell across all segments of the sell except remortgaging (which was unchanged), with mortgages to first dated borrowers down 11 per cent, second homers 18 per cent and buy-to-let mortgages declining 9 per cent. 

At any rate, this is typical of this time of the year, with August many times one of the strongest months in the property market. 

Commenting on the data, UK Finances skull of mortgage policy June Deasy said: “Lending slackened in September [rivaled to August], but it remained higher than a year ago. Remortgaging was particularly active, with borrowers seeking to lock into historically low interest estimates in advance of the widely anticipated rise in Bank base rate at the start of November.  

“Over the last year, the number of loans for remortgaging has been principal than in any period since 2009.  Low borrowing rates mean that mortgage repayments as a balance of income remain at or close to their historic low point.

“While this correlation may edge upward in the coming months, monthly mortgage payments choose remain affordable for the vast majority of borrowers.”

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