September data from the Office for National Statistics (ONS) shows an annual price increase of 7.7% which takes the average property value in the UK to £217,888.
Monthly house prices have risen by 0.2% since August 2016. The monthly index figure for the UK was 114.3.
In England, the September data shows an annual price increase of 8.3% which takes the average property value to £234,250. Monthly house prices have risen by 0.2% since August 2016.
Wales shows an annual price increase of 4.4% which takes the average property value to £146,388. Monthly house prices have risen by 0.2% since August 2016.
London shows an annual price increase of 10.9% which takes the average property value to £487,649. Monthly house prices have risen by 1.4% since August 2016.
The regional data indicates that the East of England experienced the greatest increase in its average property value over the last 12 months with a movement of 12.1%. London experienced the greatest monthly growth with an increase of 1.4%.
The North East saw the lowest annual price growth with an increase of 1.5%, while the region also saw the most significant monthly price fall with a movement of -1.9%.
Home sales in the UK fell by 4.3% between August and September, with levels remaining lower than in 2014, 2015 and before the stamp duty changes in early 2016.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “House prices have once again increased annually across the UK. Although many would welcome today’s figures as a sign of stability in our housing market, these results also expose the fundamental flaw that is stopping many buyers from getting onto the property ladder.
“The volume of available housing stock across the UK is simply not adequate. We need to make the housing market work for everyone, but this can only be achieved once we start realigning house price inflation with wage inflation. Part of this realignment will need to come from rebalancing the supply-demand conundrum. With the Autumn Statement approaching, our new Chancellor will be setting the course for the future of our housing market. Hopefully, we will be presented with some innovative, government-backed initiatives that will help to solve our nation’s worsening housing crisis once and for all.”
