House prices rise by more than £9,000 in a year

28th October 2015


The average property value in England and Wales rose by 5.3% or more than £9,000 to  £186,553 in the year to September, while the typical cost of a home in the capital hit half a million pounds.

Land Registry data shows. September prices were 1% higher month-on-month, after increases of 0.5% in August and 1.7% in July.

London was the region with the biggest annual price increase at 9.6% taking the average property price to now £499,997.

The North East saw the only annual price decrease with a movement of -0.3% to £99,559

Sales and repossessions during July 2015, the most up-to-date figures available, show that the number of completed house sales in England and Wales decreased by 4% to 81,696 compared with 84,691 in July 2014

The number of properties sold for over £1 million decreased by 9% 1,413 from 1,555 a year earlier

Repossessions decreased by 50% to 471 compared with 943 in July 2014.

Here the experts put the figures under the spotlight:

Forecast for 2016

Howard Archer, chief UK and European economist at IHS Global Insight, says: “We believe that house prices are likely to see pretty solid increases over the coming months, but will not race ahead.

“We expect house prices to rise by around 6% in 2016 after a likely similar increase in 2015.”

‘No real help in sight for struggling families’

Roger Harding, Shelter’s director of campaigns, says: “As house prices continue to rise, millions of families are being forced to watch their dream of a home of their own drift even further out of reach.

“We’ve shown that Government schemes like Starter Homes will only help the well-off, whilst hardworking families on ordinary incomes will stay trapped in expensive and unstable private renting.

“If George Osborne is truly serious about turning the tide on this crisis, the upcoming spending review is his last chance to commit to investing in the genuinely affordable homes that ordinary families can rent or buy.”

John Eastgate, sales and marketing director of OneSavings Bank, adds: “Little respite then for first time buyers, who struggle with the need to match higher house prices with larger deposits.  Strong mortgage lending figures have so far been supported by year on year growth in remortgage activity, so this acceleration in house price inflation may yet further impact on the purchase market.”

North-South divide

Rob Weaver, director of investments at property crowdfunding platform Property Partner, says: “That average prices in the capital are just a whisker off half a million pounds reinforces how buying in the capital has become a pipe dream for most first time buyers.

“This latest Land Registry data once again confirms how sales of properties valued at over £1.5m have fallen sharply following the introduction of a more punitive tax regime.

“There has been nothing less than a shakedown at the super-prime end of the property market.”

Jonathan Hopper, managing director of the buying agents Garrington Property Finders, adds: “London’s half million milestone was inevitable, but is no less remarkable for that. Prices in the capital have been marching relentlessly upward in all but the top tiers of the market, as strong demand collides with a sustained shortage of supply.

“But the average London property price won’t stay at £500,000 for long. Bullish sentiment has driven annual price inflation in the capital close to double digits again, and the half million mark could soon be forgotten.

“The price gains are steadily rippling outwards from London, with both the South East and East of England posting annual rates of growth of over 8%.

“But England’s North-South divide remains as strong as ever. Even though the North West has reversed the sudden month-on-month drop in prices it saw in August, prices in the North East of England have slipped back into negative territory. By contrast much of the South and East looks like one giant hotspot, as the national picture returns firmly to type

Mortgage availability remains strong

Stephen Smith, director of Legal & General Mortgage Club & Housing, says:

“A greater availability of mortgages due to low rates, low inflation and increasing wages has stimulated an increase in demand in the market.

“This would be good news if there were enough housing available for people to buy, unfortunately, however, this is not the case. The lack of properties coming on to the market is making the process of buying a home more competitive, which is in turn pushing up prices beyond the level of inflation and limiting the amount of choice for those looking to buy.”

Brian Murphy, head of lending at Mortgage Advice Bureau, says:“Improved mortgage affordability is helping to counter concerns about rising house prices. However, borrowers are very aware that today’s rates won’t last forever: our research shows 96% of homebuyers opted for fixed rates in September in a bid to protect themselves from rising interest rates. Those looking for a new mortgage deal shouldn’t be put off for too long, or risk missing out on significant savings.”

Need for reform

Smith adds: “To bring stability to the market, the Government needs to consider ways in which it can boost the number of properties available across the UK, so that supply can keep up with rising demand. This could include measures such as reviewing the current planning processes to remove any barriers to construction, whilst also simultaneously encouraging more efficient use of current housing stock.”


Region Monthly change since August 2015 Annual change since September 2014  Average price September 2015




England and Wales




South East




North West




West Midlands




Yorks and Humber








South West




East Midlands








North East





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