Annual house price growth in Northern Ireland 9.6% but experts warn of slowing market

The average UK house price reached a record high of £296,000, according to the latest figures from the Office for National Statistics.

But experts commenting on the data said expectations have changed significantly in recent weeks amid mortgage rate rises, with the likelihood of a dampening effect on house price growth.

Annual house price growth slowed to 13.6%, easing from 16.0% in July said.

It added that there had been volatility in house prices a year earlier due to stamp duty changes.

Average house prices in the UK increased by 1.1% between July and August this year.

The average house price in Scotland increased by 9.7% over the year to August hitting a record level of £195,000.

In Wales, the typical house price also hit a record high of £220,000 after increasing by 14.6% over the year.

Mortgage rates have jumped in recent weeks amid the recent economic turmoil following the fiscal event.

According to figures from Moneyfacts.co.uk on Wednesday, the average two-year fixed-rate mortgage on the market has a rate of 6.52% and the average five-year fix is at 6.36%.

Chris Druce, senior research analyst at Knight Frank, said: “Current activity in the housing market is being shaped by mortgage status. Those that can are pushing on and securing deals ahead of further increases, while others have paused plans to digest events. With affordability set to be a growing barrier for many homebuyers in the coming months, we forecast house price growth will slow from here, with price falls in 2023.”