UK house price growth edged to an 11-month high in September - as growth in London slid again

 
Emma Haslett
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London house price growth continued to slide (Source: Getty)

UK house price growth hit its highest in almost a year in September, as growth in the capital continued to cool.

House prices rose 5.4 per cent in September, up from 4.8 per cent in August and the highest since October 2016.

Average prices hit another record high, rising to £226,367, up 0.4 per cent on the month before, according to the figures by the Land Registry.

But the capital continued to show disappointing growth compared with other regions, with 2.5 per cent year-on-year growth, down from 2.7 per cent in August. In the North West, the English region with the strongest growth, prices rose 7.3 per cent.

However, the figures also showed sales volumes were at their lowest in five years in July, with transactions dropping 15.2 per cent compared with the year before.

"The market has continued to splutter along, registering yet more marginal positive price growth despite a sustainably lower level of buyer demand," said Russell Quirk, chief executive of online estate agent Emoov.

"This is certainly promising for those on the ladder and we should see a large degree of stability return with a heightened level of buyer interest come January.

"It is yet to be seen what, if any, impact the marginal increase in interest rates will have. It is likely that while many will sit back and see through the Christmas period as a result, there will be no medium to long-term impact on the UK’s appetite to buy property, with the cost of borrowing still very affordable for the masses."

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