Prices for property in the UK continued their rise in September as interest from new buyers increased slightly whilst the number of homes being listed for sale dropped.
On average, a property in the UK was £217,888 in September, with statistics showing a 7.7% increase year-on-year.
Property prices increased by 0.2% between August and September, the Office for National Statistics (ONS) revealed.
The ONS said the numbers for September “suggested a period of relative stability during the month”.
The ONS referred to data by the Royal Institution of Chartered Surveyors stating that there was a modest increase in enquiries from buyers, furthermore, the number of lending approvals also experienced a rise.
The ONS also leaned on RICS research showing that the number of new listings fell once again in September compared to August, a trend that has been continuing for the past seven months.
House prices rose in almost every area of the UK. The only areas untouched by this change are the north east, the south east and Yorkshire and Humber.
“Although house price growth has cooled in parts of the UK, fundamentals suggest the long term upward trend will continue, and political uncertainty must not distract policymakers from the underlying structural issues that continue to plague the housing market,” said John Eastgate, sales and marketing director of OneSavings Bank.
“Buyer demand has rebounded following political uncertainty over the summer to rise for a second consecutive month in October.
“In contrast, estate agents are reporting fewer available properties on their books, a symptom of the chronic undersupply facing the UK housing market. This will push up prices in the longer term, hampering affordability, at a time when real term incomes may begin to fall.”
Eastgate added that he isn’t expecting a “silver bullet” at next week’s Autumn Statement”. He did, however, express hope for new measure to encourage construction and improve affordability.
An £18m fund announced last week to accelerate planning permissions in England is one such measure, but this alone is a drop in the ocean if we are hit the 300,000 new homes per year that the UK will need.”