The Office for National Statistics’ (ONS) UK House Price Index for August 2016 has shown an annual price increase of 8.4% which takes the average property value in the UK to £218,964.
Monthly house prices have risen by 1.3% since July 2016. The monthly index figure for the UK was 114.8.
In England, the August data shows an annual price increase of 9.2% which takes the average property value to £235,573. Monthly house prices have risen by 1.4% since July 2016.
Wales shows an annual price increase of 2.7% which takes the average property value to £144,514. Monthly house prices have fallen by 0.6% since July 2016.
London shows an annual price increase of 12.1% which takes the average property value to £488,908. Monthly house prices have risen by 1.3% since July 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 13.3%, while the South West experienced the greatest monthly growth with an increase of 2.3%.
The North East saw the lowest annual price growth with an increase of 3% and the area also saw the only monthly price fall with a movement of -0.2%.
UK home sales grew by 8.4% in the year to August, up slightly from 8.0% in July. Although demand and supply were broadly unchanged compared with the previous month, the indicators remained somewhat weaker than in 2015 and early 2016.
Nick Davies, head of residential development at Stirling Ackroyd, said: “The pace of house prices rises has increased as investors seek out a safe haven from economic uncertainty. Near zero interest rates, combined with an expected rise in inflation have ensured savings accounts and gilts offer next to no returns.
“As these conditions are prevalent right across Europe, foreign buyers are still looking to invest in the London, with the 12.1% rise in house prices year-on-year in the capital more than outweighed by the 18% dip in the value of the pound compared to the euro over the last 12 months.
“New builds in London have been particularly popular with foreign buyers as they require minimal maintenance. Having said that, the hunt for houses hasn’t boosted prices in every borough and the local picture is more nuanced. While Newham has witnessed the fastest annual growth on any local authority in the country, Camden has actually seen average house prices fall.
“The perceived better value in London’s outer boroughs is pulling in more investment, spurred on by improved transport links in these areas, including the plans for the new Silverton road tunnel in Newham.”
