Average house prices rise 11.8% to new record high of £270,000: UK HPI

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UK average house prices increased by 11.8% over the year to September 2021, up from 10.2% in August, according to the latest UK House Price Index from the ONS and Land Registry.

The average UK house price rose to a new record high of £270,000 in September, £28,000 higher than the same time last year. Average house prices increased over the year by 11.5% in England, 15.4% in Wales, 12.3% in Scotland, and 10.9% in Northern Ireland.

The North West was the region with the highest annual house price growth, with average prices increasing by 16.8% in the year to September, up from 11.6% in August.

The lowest annual growth was in London, where average prices increased by 2.8%, down from 6.7% in August. This represents the lowest annual growth in London since July 2020.

Kevin Roberts, director at Legal & General Mortgage Club, added: “A rush to beat the stamp duty holiday deadline has clearly kept the housing market busy, with low mortgage rates and a desire amongst buyers for homes with more space driving considerable demand. The tapering of the tax break has also encouraged international buyers, in particular, to press ahead with their plans to purchase property. In fact, our data shows that demand for lenders that would consider applicants with a visa remained high in September. We should celebrate the resilience of the mortgage market, but it’s equally important that we’re mindful of those with challenging financial circumstances, especially with a rate rise looking increasingly likely."