October’s increases were led by annual growth in England, where home values jumped 13.2 per cent in the year to October, pushing the average property value to £316,073
Home prices across the U.K. rose 12.6 per cent in October, leaving average prices a sizable £33,000 ($40,969) higher than they were at the same time last year, according to data from the government’s Office of National Statistics.
The annual gains left the average U.K. house price at £296,000—though the increase likely reflects stronger demand from the late summer months, experts said.
While these figures are based upon transaction flow that started its journey in the summer, the signs are there that we are seeing values soften along with sales volumes, Gareth Lewis, commercial director of property lender MT Finance, said in a statement.
As we know, these figures will be further impacted in coming months due to the removal of mortgage products, and their replacement at considerably higher rates, he added.
At the country level, October’s increases were led by annual growth in England, where home values jumped 13.2 per cent in the year to October, pushing the average property value to £316,073.
Meanwhile, Wales saw house prices rise 11.8 per cent in the year to October, and in Scotland, property prices increased by 8.5 per cent.
The report analyzed Northern Ireland’s quarterly prices and found the average price increased 10.7 per cent to £176,131 in the third quarter of the year, compared to the same period in 2021.
Price gains are expected to slow as the statistics reflect the holiday market, and are ‘likely to remain subdued until the beginning of 2023 as part of a seasonal drop in activity levels combined with the continued effects of the mini-budget and rising interest rates,’ said Nick Leeming, chairman of estate agency Jackson-Stops.