Average house price up by £11,000 annually to £226k

The lowest annual growth was in London where prices rose just 2.6%
The lowest annual growth was in London where prices rose just 2.6%

The north west of England has led the way for house price growth over the past year, while London has seen the smallest annual increase across the UK, official figures show.

The average price in Northern Ireland was £129,000, an increase of 4.4% over the year.

Overall, average house prices increased by 5% in the year to August, up from an annual increase of 4.5% in July, according to the report released jointly by the Office for National Statistics (ONS), the Land Registry and other bodies.

House prices were also up by 0.5% month-on-month, taking the average UK property value to £226,000 - £11,000 higher than in August 2016.

Across the regions, the north west of England showed the highest annual growth, with prices increasing by 6.5% to reach £160,000 on average in August.

This was followed by the East of England, East Midlands and South West, where prices all increased by 6.4% annually.

The lowest annual growth was in London, where prices increased by 2.6% over the year, followed by the North East at 3.7%.

London continues to be the region with the highest average house price at £484,000. The lowest average price continues to be in the North East at £131,000.

Wales saw house prices increase by 3.4% annually, reaching £150,000 on average.

In Scotland, the price increased by 3.9% over the year typically to stand at £146,000.

Howard Archer, chief economic adviser at EY ITEM Club, said: “Housing market activity has picked up from the lows seen around mid-2017 but is still hardly buoyant.”

He continued: “We see house prices being muted over the fourth quarter and then rising a modest 2% to 3% in 2018.