UK property prices went up in September as new buyer enquiries rose – but new sales listings went into decline
Property prices continued to rise in September, as new buyer enquiries increased modestly – but the number of new homes being listed for sale dropped.
The average price of a property in the UK was £217,888 in September, with official statistics showing prices went up 7.7 per cent on an annual basis.
Property prices rose 0.2 per cent between August and September, according to the Office for National Statistics (ONS).
The ONS said the numbers for September "suggested a period of relative stability during the month".
It noted the Royal Institution of Chartered Surveyors (RICS) found there was a "modest increase in new buyer enquiries" in September, and the volume of lending approvals also went up.
The ONS also cited RICS research showing new sales listings fell again in September compared to August, continuing the trend over the past seven months.
In London, the average price of a property hit £487,649 in September, rising 1.4 per cent compared to August, and up 10.9 per cent over the year.
Prices rose in almost every part of the UK in September, except in the north east, the south east and Yorkshire and the Humber.
Read more: Should we be prepared for big falls in UK house prices?
“Although house price growth has cooled in parts of the UK, fundamentals suggest the long term upward trend will continue, and political uncertainty must not distract policymakers from the underlying structural issues that continue to plague the housing market," said John Eastgate, sales and marketing director of OneSavings Bank.
"Buyer demand has rebounded following political uncertainty over the summer to rise for a second consecutive month in October.
"In contrast, estate agents are reporting fewer available properties on their books, a symptom of the chronic undersupply facing the UK housing market. This will push up prices in the longer term, hampering affordability, at a time when real term incomes may begin to fall."
Eastgate added that he isn't expecting a "silver bullet" at next week's Autumn Statement, but does hope for measures introduced to encourage construction and improve affordability in the housing market.
"An £18m fund announced last week to accelerate planning permissions in England is one such measure, but this alone is a drop in the ocean if we are hit the 300,000 new homes per year that the UK will need," he said.
(Source: ONS)