‘Plenty of momentum left in the property market’

House prices leapt by 12.1% in the 12 months to September, marking the fastest annual growth seen since July 2007, according to official figures.

The average house price across the UK stood at £273,000 in September, which is £1,000 lower than an all-time high recorded in August but still nearly 12% higher than typical values during the previous peak of the market in 2008, the Office for National Statistics (ONS) said.

A typical first-time buyer faces having to pay 13.3% more to get on the property ladder than they did a year ago.

This is the highest annual price increase for first-time buyers since March 2005. Someone climbing the first rung of the property ladder now needs to pay £209,000 on average.

The ONS said house prices are continuing to "increase strongly across the UK, with prices in London again showing the highest growth".

However, there are signs that the pace of house price growth is softening. The ONS said that in a number of regions, including London, prices have fallen back from the record levels seen in August.

On a month-on-month basis, prices across the UK increased by 0.5% between August and September, which is a smaller uplift than a 0.8% monthly rise recorded in August.

House prices in England and Scotland remain above their pre-financial crisis peaks of 2008 but have dipped slightly compared with their levels in August.

But in recent weeks, lenders have unleashed some of their lowest ever mortgage rates onto the market as they look to meet end-of-year targets. Mark Harris, chief executive of mortgage broker SPF Private Clients, said the ONS figures show "there is still plenty of momentum left in the market".

He said: "With the spring likely to be a challenge for the housing market ahead of the general election, lenders will continue offering fantastic deals to entice buyers and those remortgaging."

Housing Minister Brandon Lewis said: “This Government is committed to delivering long-term economic stability. That's why we've pulled out the stops and got Britain building, with planning permission granted for 230,000 homes across England in the last year and housebuilding levels now at their highest since 2007.”

Source: www.theargus.co.uk