Figures from LSL Property Services’ house price index show the price for a home has increased by an average £16,446 annually, equivalent to £45 a day.
However, growth has fallen month-on-month from 0.9% to 0.6% between October and November, meaning it will likely take a few more months for the average house price to reach the £300,000 mark.
The South East of England has shown the fastest growth with prices rising an average of 7.1% in the year to October, while London has dropped to fourth on the list with an increase of 1.5% between September and October.
Adrian Gill, director of Reeds Rains and Your Move estate agents, said that Londoners hoping to use the Help to Buy: ISA will have to be quick, as the upper limit of £450,000 can now only buy the average house in 12 boroughs, which see an average annual price increase of 12.5%.
Some of the capital’s commuter towns, like Reading and Luton, have shown big jumps in house price growth with increases of 18.3% and 17.3% respectively in the 12 months to October.
While prices have risen, the number of home sales has fallen by 15% month-on-month, with sales for the year to November of 2015 so far at 3.4% lower than the same period last year – although the announced 3% surcharge in Stamp Duty Land Tax on second homes could cause a late winter surge as landlords and second home buyers hurry to beat the April 2016 deadline.
With supply of homes being at a historically low level, this could lead to a spike in both house prices and sales in the next few months.