The UK house price growth may have slowed month to month but in a comparison of where the average sat last year shows the cooling off has not impacted the market by much.  Between August and September the average house price grew by only 0.5% according to the Office for National Statistics (ONS).  However, in a year on year comparison, the end of September brought a 12.1% increase.  In August there had been a year on year growth of 11.7%.  London properties still contribute to the increased average as the capital realized the fastest growing area with an 18.8% annual increase.

The average home in the UK now costs £272,000 according to the data from ONS.

The data revealed that on an annual basis the house price index rose 12.5% in England, 10.9% in Northern Ireland, 7.6% in Scotland and 5.8% in Wales.  The fastest increase by area were in London at 18.8%, East of England with 13.4%, South East of England with 11.6% and the smallest increase was noted in Yorkshire and the Humber at 6.0%.

First time buyers have had to pay more for properties and that has put many off of the market as their demand has fallen for mortgage loans according to other reports.  The ONS data reported that first time buyers paid 13.3% more on the average in September than the same month last year. 

The housing market may have cooled down but many experts suggest that it will stay strong as long as interest rates remain cheap on mortgage offers from lenders.  Those home movers that have chosen to upgrade or downgrade are finding the interest rates attractive as well.  Remortgaging homeowners are not showing as strong as demand for new deals as expected and that has caused lenders to become more competitive with cheap interest rate offers.  Those seeking to buy or remortgage should find low rates on the market over the next few weeks but the trend is not likely to stay once demand grows.