Annual house price growth accelerated in September – ONS

Annual home worth progress accelerated to 2.9% in September, in response to official figures.

Throughout the UK, the common property worth is £292,000, the Workplace for Nationwide Statistics (ONS) mentioned.

The annual tempo of worth progress estimated by the ONS ticked upwards from 2.7% within the yr to August.

Common home costs elevated in England to £309,000 (a 2.5% annual improve), in Wales to £217,000 (0.4%), and in Scotland to £198,000 (5.7%), within the 12 months to September 2024.

The common home worth for Northern Eire was £185,000 between April and June, up by 6.4% from a yr earlier.

The figures had been launched because the ONS mentioned that Client Costs Index (CPI) inflation accelerated to 2.3% in October, from 1.7% within the earlier month.

Inflation was greater than anticipated for the month, with economists having predicted a rise of two.2%.

David Hollingworth, affiliate director at L&C Mortgages mentioned the bounce in inflation might “carry additional complications for mortgage debtors”.

He mentioned: “Though the speed lifting above goal just isn’t a shock, at 2.3% it’s a little greater than many had anticipated. That may pour extra chilly water on the prospects for an additional reduce to (the Financial institution of England) base charge to come back subsequent month, which will likely be disappointing information for these on a variable or tracker charge mortgage.”

Mr Hollingworth mentioned fastened charge mortgages have climbed in current weeks, including: “These will increase are because of the much less optimistic forecast for rates of interest and in the present day’s figures will do nothing to vary that.

“Though nonetheless anticipated to fall, the rising expectation has been for charges to fall extra slowly and never so far as beforehand anticipated.”

Alice Haine, a private finance analyst at Bestinvest by Evelyn Companions mentioned: “Householders and first-time patrons are prone to be disheartened by the newest inflation studying, because it reduces the probability of a 3rd charge reduce this yr.

“The common value of a brand new fastened charge mortgage has been creeping up for the reason that Price range, as lenders worth their merchandise to mirror expectations that rates of interest might keep greater for longer.

“With the newest inflation studying confirming that inflation has not solely risen again above the (Financial institution of England’s) 2% goal however has are available in greater than anticipated, it implies that mortgage debtors might have extra ache to deal with if extra lenders modify their charges upwards.”

Mark Harris, chief govt of mortgage dealer SPF Non-public Purchasers, mentioned: “Additional charge reductions are extra doubtless subsequent yr than this one, with swap charges (that are utilized by lenders to cost mortgages) rising on the again of in the present day’s inflation figures.

“Nonetheless, whereas inflation rose greater than anticipated, it’s nonetheless solely simply above the two% goal and fluctuations are usually not sudden.”

Nick Leeming, chairman of property agent Jackson-Stops, mentioned: “Regardless of the bottom charge being reduce to 4.75%, this discount just isn’t but feeding by means of into mortgage charges attributable to exterior headwinds.

“However the market ought to take confidence from the truth that exercise ranges are up year-on-year.”

ONS figures additionally confirmed that common UK non-public rents elevated by 8.7% within the 12 months to October.

This was up from 8.4% annual worth progress in September, however beneath a report excessive of 9.2% in March.

Sarah Coles, head of private finance at Hargreaves Lansdown mentioned: “Getting excellent news about your lease is about as widespread as discovering your housemates have washed up for you, or your landlord suggesting you get a canine.

“It means for a lot of, the one means out of the infinite cycle of rising prices is to purchase, however that is far simpler mentioned than achieved when rents soak up a lot of your revenue.”

Nathan Emerson, CEO at Propertymark, mentioned: “Promoting up altogether or turning to the short-term letting market is changing into a extra enticing choice for landlords because of the difficult legislative adjustments and elevated monetary liabilities they face.”