Average UK house price up by £11,000 annually to reach £226,000, figures show

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The north west of England has led the way for house price growth over the past year, while London has seen the smallest annual increase across the UK, official figures show.

Overall, average house prices increased by 5% in the year to August, up from an annual increase of 4.5% in July, according to the report released jointly by the Office for National Statistics (ONS), the Land Registry and other bodies.

House prices were also up by 0.5% month-on-month, taking the average UK property value to £226,000 - £11,000 higher than in August 2016.

Across the regions, the north west of England showed the highest annual growth, with prices increasing by 6.5% to reach £160,000 on average in August.

This was followed by the East of England, East Midlands and South West, where prices all increased by 6.4% annually.

The lowest annual growth was in London, where prices increased by 2.6% over the year, followed by the North East at 3.7%.

London continues to be the region with the highest average house price at £484,000. The lowest average price continues to be in the North East at £131,000.

Wales saw house prices increase by 3.4% annually, reaching £150,000 on average.

In Scotland, the price increased by 3.9% over the year typically to stand at £146,000.

The average price in Northern Ireland was £129,000, an increase of 4.4% over the year.

Howard Archer, chief economic adviser at EY ITEM Club, said: "Housing market activity has picked up from the lows seen around mid-2017 but is still hardly buoyant."

He continued: "We see house prices being muted over the fourth quarter and then rising a modest 2% to 3% in 2018.

"The fundamentals for house buyers are likely to remain challenging over the coming months, with consumers' purchasing power continuing to be squeezed by inflation running higher than earnings growth.

"Additionally, housing market activity is likely to be hampered by fragile consumer confidence and limited willingness to engage in major transactions."

Sarah Beeny, owner of estate agent Tepilo, said: "I expect prices will continue to steadily rise due to the ongoing shortage of properties coming to market."

Ishaan Malhi, chief executive and founder of online mortgage broker Trussle, said: "We've already begun to see many lenders increase their rates this month, and there could be further rate rises on the horizon from the Bank of England.

"This will make securing a first mortgage that bit harder, though we should remember that there are still extremely attractive mortgage deals on the market."

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