UK house price inflation reached 5 per cent in the year until August 2017, propelling the average residential property price to £225,956.
New data from the Office for National Statistics (ONS) proved that the annual rate of house price inflation slowed slightly, down from the 5.1 per cent increase recorded the previous month. The average residential property price is now £11,000 more expensive than in August last year. The monthly rate of inflation also saw decline, dropping from 1.1 per cent in July to 0.5 per cent in August.
Regionally, the north west saw the strongest growth in average residential property price at 6.5 per cent, followed by the south west, east of England and the East Midlands, all at 6.4 per cent.
Unsurprisingly, and in keeping with recent trends, London witnessed the lowest growth rate, with prices increasing by a mere 2.6 per cent over the year in the capital.
Director of Legal & General Mortgage Club, Jeremy Duncombe, said: ‘Annual prices are consistently rising as more buyers chase fewer properties. Escalated by a critical a lack of housing stock, this trend is only set to continue if more affordable housing is not built. As speculation around the Autumn Budget begins to build up, we hope there will be a genuine answer to boost supply that gives everyone a realistic the chance to own a home.’
Director of marketing for Foundation Home Loans, Jeff Knight, said: ‘House prices are just one part of the housing market puzzle, and another rise in prices is not reflective of a buoyant market. There appears to be areas of the country where there is more activity than others, most likely driven by greater levels of affordability. A rise in interest rates will place great strain on this affordability – despite the fact they will still be at an unprecedented low. We need more housing – and affordable housing – but delivering that has clearly been a challenge for a long time and we are seeing the consequences today.’