UK house price growth accelerates in January, ONS reveals

UK house prices rose 7.9% in the year to January, driven by higher margins in England’s South East and London, data revealed on Tuesday.

The latest figures from the Office for National Statistics compared to 6.7% growth in the year to December 2015.

England house prices rose an annualised 8.6% in January while Wales fell 0.3%, Scotland climbed 0.1% and Northern Ireland was up 0.8%.

South East England experienced the most growth, rising 11.7%, while London house prices continued to surge with a 10.8% increase. England’s east also saw a healthy price increase of 9.8%.

Rob Weaver, director of investments at property crowdfunding platform Property Partner, said it was “almost inevitable” prices will continue to increase as demand continues to outstrip supply.

“Historically low interest rates are unlikely to start creeping up over the next 12 months and the jobs market is buoyant,” he said.

However, Weaver said homebuyers are wary of a potential fallout should Britain vote to leave the European Union in the 23 June referendum.

The first quarter of the year will see a jump in prices as buy-to-let investors and second home buyers rush to buy ahead of the 3% stamp duty hike on 1 April, Weaver added.

Excluding London and the South East, UK house prices rose 5.1%.

On a seasonally adjusted month-on-month basis, average house prices grew 0.9% in January.