House price growth at 8%
Published On 13 November 2006
Official figures have put annual house price growth at eight per cent for September. The new research from the Department for Communities and Local Government (DCLG) has found the September rate of growth was at its highest level since back in March 2005.
The average UK property is now worth £198,552 while the average price of a home bought by a first time buyer has risen by 7.7 per cent to £152,633.
Milan Khatri, RICS chief economist said: "The government's official house price measure showed a marked acceleration in price rises to an annual rate of eight per cent in September, the highest pace since March 2005. Higher inflation pressures have been apparent across all regions since the summer as the job market has strengthened.
"First-time buyer property prices showed a firm acceleration to a 7.7 per cent annual rise up from 4.1 per cent at the end of last year with increases easily outstripping wage growth. However, as lenders react to last week's Bank of England interest rate rise, we expect the housing market to begin to cool next year."
Scotland saw the greatest improvement in annual house price growth across the UK with an increase of 12.9 per cent.
