Although this is a steep rise over the year, experts are interpreting it as a ‘turning tide’ for house prices, which have been soaring in double digits for the well over a year.
Indeed, today’s figures from the Office for National Statistics (ONS) reveal there was no change in prices between August and September.
What’s more, in August the annual increase in price was 13.1%.
The slowdown in growth in September is being attributed to house prices rising sharply in September 2021.
However, there are many in the property industry who feel it is a reflection of the other factors.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “This most comprehensive of all the housing market surveys, though a little dated, confirms what we are seeing at the sharp end.
“Prices continue to be supported by lack of stock as buyers seek to take advantage of competitive mortgage rates before fallout from the mini-Budget pushed them higher.
“However, worries about further rises in inflation and potential implications arising from the Autumn Statement are contributing to a reduction in new business.”
How much are prices across the UK?
According to the ONS, the average property in the UK is now £295,000. In each country of the UK the average prices are as follows:
England – £314,000 (9.6% increase)
Wales – £224,000 (12.9%)
Scotland – £192,000 (7.3%)
Northern Ireland – £176,000 (10.7%)
Andy Sommerville, director at Search Acumen, said: “Today’s data is further evidence of a turning tide for house prices, reflecting the same pattern of declining growth we have started to see emerge over the last two months.
“As the impacts of previous rate rises and inflation filter through into house prices over coming months, we’d expect to see further declines coming down the tracks.”
What do slowing house prices mean for buyers and mortgage customers?
The figures are based on information complied before the mini-Budget and subsequent mortgage turmoil so they do not reflect the changes experienced in recent months.
However, mortgage experts said there are now a number of lenders bringing new products back to the market to reflect borrowing changes in these difficult times.
Vikki Jefferies, proposition director at PRIMIS Mortgage Network, said: “Today’s figures reflect a cooling in the rate of house price growth, although it’s a testament to the strength of the mortgage market that figures still remain above pre-pandemic level and demand for properties remains healthy.
“With lenders now reinstating products, having pulled many in response to the mini-budget, independent advice will be essential to homebuyers looking to navigate the ever-changing mortgage product landscape.
“For buyers and remortgagers trying to determine which product will work best for them in the current environment, brokers are invaluable in providing the tailored guidance needed to help make the right decision.”
