Property prices hitting record highs across the UK

New data suggests that UK property prices are hitting record highs, after having risen at their fastest rate for eight months in September.

According to the latest figures from high street lender Halifax, property values grew by four per cent in the three months to September, with the average price hitting £225,109.

The figure is the highest currently on record, representing a four per cent rise year-on-year and contradicting the commonly-held belief that prices are stagnating and that the market is slowing.

In September alone, prices were up by 0.8 per cent, despite the fact that analysts had previously predicted values were unlikely to grow by any more than 0.1 per cent, if at all.

Russell Galley, Managing Director of Halifax Community Bank, said: “UK house prices continue to be supported by an ongoing shortage of properties for sale and solid growth in full-time employment.

“However, increasing pressure on spending power and continuing affordability concerns may well dampen buyer demand.

“There has been recent speculation on the possibility of a rise in the Bank of England base rate.

“We do not anticipate this will have a significant effect on transaction volumes,” he said.

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Nigel is the Managing Partner and Head of Litigation and Dispute Resolution in the London office of Mackrell Turner Garrett.