United Kingdom annual house price growth shows September surge

The latest Halifax house price survey showed a 4% price rise in the three months to September compared with the same period a year ago, up from a 2.6% annual rise in August and the highest figure since February.

House prices rose 0.8 % on the month in September alone, beating all economists' forecasts in a Reuters poll, and house prices in the three months to September were 4.0 % higher versus average expectations of a 3.6 % rise.

Speaking about the results, Russell Galley, Managing Director, Halifax Community Bank, said: "The annual rate of growth has picked up for the second consecutive month, rising from 2.6 per cent in August to 4.0 per cent in September".

Falling house prices in London were helping to fuel growth in other parts of the country, said Jonathan Hopper, managing director of Garrington Property Finders. Meanwhile, earnings growth remains below the pace of price inflation, meaning United Kingdom consumers will continue to be squeezed by the pace of price rises for everyday goods.

"Since any rate rises will be limited, the impact on transaction volumes may indeed be negligible in the near term". "Momentum remains patchy and what growth there is is wavering rather than sustained, and prices remain under intense pressure in several key regions", he said.

Russell Quirk, founder and chief executive of eMoov.co.uk, said: "It seems more than apparent that the United Kingdom market has found its feet and is starting to gain momentum again". It follows a 1.5% increase in August.

Other indicators point to a regional divide in house price trends, with the rate of growth slowing in London and the south east but remaining strong in regional cities. With the ongoing issue of building supply, United Kingdom home owners can be assured the price of their property will remain stable as we head towards 2018, ' he added.

Lucy Pendleton, director of independent estate agents James Pendleton, felt the rise is primarily due to the time of year.

'What that often means is that the prices attached to those transactions reflect where the market was much earlier in the year, when prices were higher.

She said: "The back-to-school bounce in September is likely the cause of this substantial rebound in growth". As such, we expect most of the pickup in Halifax's index to unwind over the coming months. In London, we are now seeing many more price reductions at bigger discounts compared with past year, ' she pointed out.

"Sadly, we are not seeing the hoped-for autumn bounce but a steady market is more than welcome with so much uncertain economic news". 'This could be attributed to low numbers of new properties being marketed over the summer. "Halifax's measure is the most volatile of all the indices we track", he says.

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