Wednesday 18 November 2020 11:56 am

UK house prices surge to record high in September

UK house price growth accelerated in September, driving average property prices in London and across the UK to a record high.

House prices across the UK increased by 4.7 per cent to £245,000 in the year to September, up from three per cent growth in August.

Read more: UK house prices see fastest growth in four years but monthly rate slows

London’s average house prices hit a record high of £496,000, according to the latest official data from the Office for National Statistics.

Average house prices in England jumped 4.9 per cent to £262,000, while in Wales, Scotland and Northern Ireland prices rose 3.8 per cent, 4.3 per cent and 2.4 per cent respectively.

Pent-up demand may have contributed to the rise in UK house prices, the ONS said.

Meanwhile, data suggested that the pandemic has caused buyers to reassess their housing preferences.

Read more: UK house price growth rises to highest rate in five years

The average price of detached properties increased by 6.2 per cent in the year to September, while flats and maisonettes saw a two per cent jump, as buyers sought more space following months spent at home during lockdown.

Nick Leeming, chairman of estate agent Jackson-Stops, said: “House price growth this month is almost double what it was in September last year, as we start to see the true impact of the stamp duty holiday take hold.

Read more: Rush to beat stamp duty rise sees UK house prices jump again

“Despite the incentive being introduced in July, housing transactions take weeks to progress from offer to completion, therefore this is the first month we can begin to assess the benefits of Sunak’s stimulus.

“The annual uplift in house prices of nearly 5 per cent suggests that sellers may well be adding the savings buyers are making into the price of their homes, so that they also benefit from the incentive.”

Benham and Reeves director Marc von Grundherr added: “The property market continues to fire on all cylinders with positive movement across the board in all but one region on a monthly basis and a clean sweep where annual price appreciation is concerned.

“While the current stamp duty holiday has caused huge backlogs of sales waiting to complete, there’s no doubt that it has contributed a considerable level of fuel to the furnace.”