Average house prices in the UK rose to £203,923 in October, up 3 per cent month on month, according to the latest house price index from Sequence, owner of several major estate agents.
Sales transactions were up 4 per cent last month and increased by 33 per cent annually to reach a three year high, while there are now seven buyers to every new property in the UK, the highest level since records began.
London prices hit a new average high of £404,199, up 10 per cent since last year.
Meanwhile, the number of mortgage applications increased 6 per cent in the month to October and was up 45 per cent annually, Sequence figures revealed.
David Plumtree, Chief Executive at Sequence, owners of 300 branches, including Barnard Marcus, William H Brown and Fox & Sons, comments: “The appetite to buy property across the UK has risen to record levels, with almost seven new buyers for every new property coming onto the market. This has impacted on property prices as competition for every new instruction intensifies and we have seen the average house price rise by 3 per cent in October which equates to £5,583 in one month alone and 11 per cent annually.
“In London where close to 14 people are competing for every property, prices have risen by 4 per cent on month and 10 per cent annually. This has taken the average price of a London property above the £400,000 threshold for the first time since our records began.
“In spite of rising prices, there has been a surge in mortgage applications across the board, demonstrating that buyers are still willing and able to buy. Increasingly attractive mortgage rates and incentives such as Help to Buy are fuelling the drive in demand and as long as this continues, we can expect to continue to see prices rising.”
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