"Limited stock and high demand continues to drive annual house price growth, and it's only making home ownership a more exclusive club", said Duncombe.
House prices across the United Kingdom were up 5.4% in September compared to a year ago and up 0.4% from last month, putting the average house price in the nation up to £226,367 (US$297,051), according to a new report by the United Kingdom government's Office for National Statistics. That's an £11,000 increase on the average United Kingdom home.
The average United Kingdom house price was £226,000 in September 2017, marking a 0.4 per cent increase on the previous month.
This rise took the average United Kingdom house price to £226,000 in September - £11,000 higher than in September 2016 and £1,000 up on August 2017.
The figure is an increase from the 4.8 per cent rise in the year to August 2017. This was followed by the South West (6.6%) and East Midlands (6.4%). The slowest annual growth was in London at 2.5%.
Jeff Knight, Director of Marketing at Foundation Home Loans, commented: "The continued shortage of homes on the market remains one of the key drivers of house price growth, rather than a particularly resilient market". Growth for the year is now likely to be around the upper end of this range.
On a month-on-month basis lending fell across all segments of the market except remortgaging (which was unchanged), with mortgages to first time borrowers down 11 per cent, second homers 18 per cent and buy-to-let mortgages declining 9 per cent. "As ever, we need to make sure there is a dual focus across the market so the quality and availability in the private rental sector is kept at a high standard for those who are not yet in a position to buy".
Ishaan Malhi, the CEO and Founder of online mortgage broker Trussle, also says: "Many people expressed concern for the housing market after Brexit, but prices are 5.4% higher than they were this time a year ago".
Annual house price growth accelerated in September, according to official figures. Up until this point, a combination of low mortgage rates and high rates of employment have helped balance out the squeeze on household incomes from stagnant wages and rising inflation. However, last week's rate rise signalled the start of raised borrowing costs for the first time in a decade, which is likely to curtail buyer activity in the coming months.
"As the Budget draws closer, we hope to see some ironclad commitments from the government on its plan for tackling the growing demand for housing". Buyers and sellers haven't adversely reacted to the rate rise, probably because they have been used to rates at 0.5% for eight years and the Bank of England simply returned the base rate to that level.