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House prices rise by more than 4% year-on-year

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Thu 08 Oct 2015

House prices rise by more than 4% year-on-year

The average house price in England and Wales has increased by 4.2% in the past year and now stands at £284,742, according to the latest LSL House Price Index.

The index shows that last month was the strongest September for house sales since 2007, driven by increased activity in the north and strong year-on-year price growth in the South-East.

September’s 0.4% monthly price increase on August also means that a new house price record has been set in every month so far this year.

Richard Sexton, director of e.surv chartered surveyors, said: “The speed of house price growth across England and Wales may not be setting the world alight, but it’s certainly showing it has stamina – September marks the 42nd successive month of positive annual growth.

“Typical property prices are now £11,500 higher than a year ago, and house price growth continues to outdo rises in wages and consumer prices.

“This growth is primarily being underpinned by sturdy demand and solid activity at the bottom of the property ladder.

“The most frequent paid property price across England and Wales is just £125,000, mirroring the level at which stamp duty becomes payable, and reflecting the impetus that has been injected in the first-time buyer market recently.

“The shift in stamp duty bands continues to slow growth at the higher end of the market, and prices above £600,000 are largely stationary.”

The South-East has seen the biggest annual price increase, with houses now costing 5.8% more than a year ago at £333,539. Prices in Greater London have risen by 3.9%.

The East Midlands and the South-West also experienced significant year-on-year growth, with price rises of 4.8% and 4.5% respectively.

The most modest rises were seen in Wales (1%) and the North of England (1.8%).

* According to the Home Owners Alliance, which averages the various house price indices – LSL, Land Registry, Nationwide and Halifax – house prices went up 5.2% on an annual basis in August.