House prices in England and Wales jump to six-month high in September

According to the Land Registry, the average price of a home in the capital rose to £499,997 last month and is expected to exceed the half a million mark this month, as prices have been rising consistently.

Prices in London surged 9.6% last month, recording the fastest annual rise among the areas surveyed, as property prices rose 1.8% between August and September.

The report found the cost of properties across England and Wales rose 5.3% year-on-year in the 12 months to the end of September, marking a six-month high, with the average home now valued at £186,553.

Meanwhile, house prices in the North East declined 0.3% year-on-year, bringing the average price down to £99,559.

“We expect house prices to rise by around 6% in 2016 after a likely similar increase in 2015,” said Howard Archer, chief UK and European economist at IHS Global Insight.

“We expect support for housing market activity - and house prices - to come from very low mortgage interest rates, strengthening earnings growth, high employment and elevated consumer confidence.”