House prices have risen by 11.7 per cent over the past year to August, with London seeing the largest growth of 19.6 per cent.
ONS data showed that overall growth rate in house prices has remained relatively unchanged in August, although in London again, growth outpaced the national trend. Excluding London and the South-east, house prices in the UK grew by 7.8 per cent in the 12 months to August 2014, highlighting the increasing North-South divide in the housing market.
As of August, annual house price inflation was 12.2 per cent in England, 9.6 per cent in Northern Ireland, and 6.7 per cent in Scotland. Of all regions, Wales had the lowest annual growth of 4.7 per cent.
The average house price reached £274,000 in the UK in August, compared to 246,000 a year previously. Again, the largest increase was felt in London, where average prices rocketed from £436,000 in August 2013 to £514,000 in August 2014.
Of all English regions, the North-east has experienced the slowest growth; house prices only increased by £4,000, growing from £150,000 to £154,000 over the same period.
House prices indices from the Land Registry and Halifax suggest that prices continued their growth into September, although Nationwide’s house price index indicated that prices fell by 0.2 per cent over the past month - the first fall in prices for 17 months.
Commenting on the data, Richard Snook, senior economist at PwC said “Our UK house price growth projection for 2014 remains unchanged at 8-10 per cent.
“Annual growth so far this year (January to August) has averaged 9.7 per cent, so it is currently on course to be towards the top end of the range. For 2014 as a whole we project the average UK house price will cost between £261,000 and £266,000.”