House prices continue to remain relatively stable across most of the UK, although prices in London are increasing, whilst Northern Ireland prices are falling, the data from the Office of National Statistics also shows.
The year on year increase reflected growth of 1.8% in England, 0.9% in Scotland and 1.6% in Wales, which were offset by a decline of 10.1% in Northern Ireland.
Annual house price increases in England were driven by a 5.2% rise in London and a 2.4% increase in the North East
Excluding London and the South East, UK house prices increased by 0.8% in the 12 months to September 2012.
On a seasonally adjusted basis, UK house prices fell by 0.2% between August and September. Prices of new dwellings fell by 2% .during the 12 months to September 2012, while the price of pre-owned dwellings increased by 1.8% in the same period.
In September 2012, prices paid by first time buyers were 1.5% higher on average than in September 2011. For owner occupiers (existing owners) prices increased by 1.7% for the same period.
According to David Brown, commercial director of LSL Property Services, the slight dip in house prices in September went hand in hand with a lull in buyer activity in August, as prospective home owners put their house hunting on hold until after the Olympics.
He added that it is good news is that prices have already shown signs of climbing again, with demand rising. ‘Funding for Lending is starting to gain traction, playing an increasingly important role in lending levels,’ he said.
‘However, with capital adequacy requirements a major obstacle in lenders’ path to increasing the number of high LTV mortgages reaching first-time buyers, it’s difficult to see new buyer numbers rising at the rate needed to drastically reduce demand in the private rented sector,’ he explained.
‘Rising inflation is also a source of concern for would be buyers, with the rising cost of living, along with rising rents, cutting into the amount renters can set aside for future deposits,’ he added.
