According to the report from the Office for National Statistics (ONS), average house prices rose by 2.8% per annum in August after increasing by 1.8% per annum in July (revised from +2.2%). This was the sixth price increase in a row and the strongest increase since April 2023. Economists had expected prices to rise by 2.5% per annum. On a non-seasonally adjusted basis, average house prices increased by 1.5% between July and August, compared with an increase of 0.5% during the same period 12 months ago. On a seasonally adjusted basis, average house prices rose by 1.0% m/m.
The ONS said that the average house price rose to 293,000 pounds in August from 285,000 pounds in August 2023. Average house prices increased in England (+2.3%, to 310,000 pounds), in Wales (+3.5%, to 223,000 pounds) and in Scotland (+5.4%, to 200,000 pounds).
Separate data showed that in September the average UK private rent rose by 8.4% per year after a similar increase in August. Average rents increased to 1,336 pounds (+8.5%) in England, 760 pounds (+8.3%) in Wales, and 973 pounds (+7.2%) in Scotland. In England, rents inflation was highest in London (9.8%) and lowest in the South West and Yorkshire and The Humber (6.3%), in the 12 months to September.