UK house prices increased by 6.1% in the year to September 2015, new figures from the Office for National Statistics have revealed.
This was up from 5.5% in August and means the average annual house price is now £286,000, up from £273,000 last year.
The ONS said annual house price growth was driven by an increase of 8.4% in the East and 7.4% in the South East. Northern Ireland saw the highest rise over the last 12 months of 10.2%.
House prices in London rose 7.2% over the year to reach a new record high of £531,000.
The North East had the lowest annual growth of 1.8% in the year to September, putting the average price of a house price at £158,000.
House price annual inflation was 1.1% in both Wales and Scotland. Average house prices in are £175,000 in Wales and £199,000 in Scotland.
First-time buyers paid 4.3% higher on average than in September 2014.
Average house prices increased by 0.8% between August and September 2015.
A recent report from the Department for Communities and Local Government showed that while the number of homes built has increased in the past year, the number still falls way short of what is needed to solve the housing crisis.
The report revealed the number of new homes built in England rose 25% in the past year to 170,690. Experts believe that to prevent house prices spiralling, around 245,000 homes need to be built each year in order to meet demand.
Paul Smith, CEO at haart estate agents, said there would be no real improvement in the levels of property stock unless the government took urgent action.
“Without a radical move, the core of the UK property market will continue to see house price increases of up to 10% in 2016. However, the top end of the property market, particularly in London, will see a price correction in 2016 because of the impact of stamp duty, consisting of a 10% drop in value for homes over £1 million.”
Shelter chief executive, Campbell Robb, said: “Every monthly price hike is yet another blow for the millions of people whose dreams of home of their own have all but disappeared.
“We’ve shown that government schemes like Starter Homes will only help the well-off, whilst anyone on an average wage will have to stay stuck with mum and dad or trapped in expensive and insecure private renting for decades to come.
“If George Osborne is truly serious about turning the tide on this crisis, next week’s spending review really is his last chance to commit to investing in homes that people on ordinary incomes can actually afford to rent or buy.”
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