In 2007, annual house price inflation hit 12.3%.
In September, house price annual inflation was 12.5% in England, 5.8% in Wales, 7.6% in Scotland and 10.9% in Northern Ireland.
However, a slowdown is on its way as the statistics are calculated using mortgage financed transactions, collected via the Council of Mortgage Lenders and as such are a snapshot of the past.
The price of property coming onto the market fell by 1.7% to mid-November according to a report yesterday from the Rightmove House Price Index.
Brian Murphy (pictured), head of lending at Mortgage Advice Bureau, commented: “Recovering property values are giving many the leverage they need to negotiate a better mortgage deal with lower monthly repayments, so it’s unsurprising that remortgage applications are rising as a result.
“The fact that annual house price comparisons still remain in double figures might seem detrimental to first-time buyers, but there has been a visible cooling in the rate of house price growth in recent months.”
ONS statistics show the average UK mix-adjusted house price in September 2014 at £273,000.
Average house prices increased strongly in all nine English regions over the year to September 2014. The largest increase was again in London at 18.8% followed by the East (13.4%) and the South East (11.6%).
Excluding London and the South East, UK house prices increased by 9.1% over the year to September 2014.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said there is still plenty of momentum in the market.
He said: Gross mortgage lending dipped in September, suggesting that buyers have concerns about the prospect of a rate rise. However, since then, the Bank of England has sent clear indications that interest rates won’t rise until next autumn at the earliest.
‘With the spring likely to be a challenge for the housing market ahead of the general election, lenders will continue offering fantastic deals to entice buyers and those remortgaging.’
