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House prices rise 4.7 per cent in September

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  • 18/11/2020
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House prices rise 4.7 per cent in September
House prices rose by 4.7 per cent over the year to September pushing up the average house price in the UK to a record high of £245,000, according to the Office of National Statistics (ONS).

 

The boom in house buying activity continues to accelerate the rate of price growth. The August ONS house price index recorded an annual increase of three per cent.

Month on month, prices in the UK have increased by 1.7 per cent, compared to a 0.1 per cent rise over the same period last year.

Average house prices in England now stand at £262,000, in Wales £171,000, Scotland £162,000 and in Northern Ireland £143,000.

Londoners can now expect to pay on average £496,000 to buy a home.

The September index reflects agreements made between buyers and sellers around six to eight weeks ago, coinciding with the announcement that stamp duty on the first £500,000 of a property purchase in England and Northern Ireland would be wiped out until 31 March. In Scotland and Wales that threshold is £250,000.

Pent up demand and a desire to move to larger homes with outside space are also factors driving up house prices.

According to the ONS, the average price of detached properties has increased by 6.2 per cent in the year to September, in comparison to flats and maisonettes which rose in value by two per cent over the same period.

Karen Noye, mortgage and protection adviser at Quilter Financial Planning, said: “The latest house price data once again seems to be out of kilter with what is going on around us and really illustrates the stamp duty holiday’s artificial boost to the housing market.

“Despite these positive figures the nation is seeing unemployment levels skyrocket and huge swathes of the population being forced to use the government’s furlough scheme, which begs the question of whether something has got to give in the future.

“To put this new data into perspective during the same period last year there was a rise of just 0.1 per cent really highlighting how significant the stamp duty holiday has been.”

 

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