The latest house price data from the Office for national Statistics (ONS) shows that UK house prices went up by 5.5 percent in the year to October 2013. This is an increase on the 3.8 percent seen in the year to the previous month of September.

Over the UK as a whole the regions saw house prices rise as follows: England – 5.7 percent; Wales – 2 percent; Scotland – 3.3 percent; Northern Ireland – 4.8 percent.

In England the major house price rise driving regions were: London – 12 percent; East of England – 4.8 percent; West Midlands – 4.7 percent.

Property rises are now being seen in all parts of the UK says the ONS, with London leading the way. When looking g at the UK excluding London and the South East prices rose by 3.1 percent.

Between September and October house prices went up by 1.4 percent on a seasonally adjusted basis.

First time buyers saw the prices they were expected to pay go up by 5.9 percent over the year to October and home-owner occupiers saw a 5.3 percent increase.

Commenting Andy Knee, Chief Executive of LMS, said:

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The property market is continuing to accelerate with average prices up 5.5% from a year ago. Surging values are still being driven by the buoyancy of the market in London, however, with peoples’ appetite for property growing and demand for homes increasing, there is increasing pressure on the already limited supply of houses across the UK. The drastic shortage of homes will need to be addressed by the Government to prevent prices rising beyond reach.

The steadfast climb we’ve seen throughout 2013 is set to continue into the New Year, with lending levels, driven by the array of accessible rates on offer, almost certain to follow suit.  However, there is a risk that The Bank of England will be forced to apply the brakes sooner than most commentators expect through a rise in interest rates and that the introduction of new regulations in April will act as a speed bump to the accelerating market.”

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