House prices across the UK have continued to grow strongly in October according to the Office for National Statistics (ONS). Official figures show that the cost of the average UK home rose by 0.8% in October, raising the annual house price inflation rate to 7% from 6.1% in September.
In the past year, house prices have jumped £16,000, meaning that the average UK home now costs £287,000. That’s a rise of £1,300 month! Although property inflation has picked up since the summer at 5.2% in July, it is still lower than the 9.8% level that it closed at in 2014.
The biggest hotspots for inflation, according to the ONS, is Northern Ireland and the East of England where prices rose 10.3% in the last year, with the South East of England growing 9.5% in the last 12 months alone.
This seems to be a fair jump when compared to Wales with an increase of just 1% and Scotland at 0.9%. However, even with this in mind, results showed that the annual rate of price growth across the whole of the UK had risen for three months in a row.
The Nationwide said UK prices rose by 3.7% in the year to November, where rival and leader, the Halifax, said prices were up 9%. Drawing on its own data, The Land Registry, says prices in England and Wales went up 5.6% in the year to October.The average property price tag is £40,000 higher than two years ago at £287,000. Average property values have reached £300,000 in England, £174,000 in Wales, £196,000 in Scotland and £158,000 in Northern Ireland.
This only proves the growing demand for property. Separate figures indicated that mortgages also continued to grow steadily in October, according to the Council of Mortgage Lenders (CML).
The number of loans made to home buyers is at the second highest number since 2007, which was up 3% last year and rose by 9% in October to 65,300. Remortgage activity also increased by 10% by value compared to September.
ONS figures show that the prices paid by first-time buyers were higher than the average in October 2014 by 5.9%. This equated in first-time buyers borrowing a whopping £4.6billion for house purchases, up 10% than October last year.