The average house price has hit a record £270,000 after surging by £28,000 over the past year, figures from the Office for National Statistics show.

The average house price has hit a record £270,000 after surging by £28,000 over the past year, figures from the Office for National Statistics show.
 
Across the UK, prices rose 11.8 per cent over the year to September, accelerating from 10.2 annual growth in August.
 
Miles Robinson of mortgage broker Trussle has responded by saying: “The Stamp Duty Holiday incentivised buyers to accelerate their moving plans in order to save up to £15,000 in costs. As such, house price growth leading up to September was incredibly strong. 
 
“But, while the market remained buoyant because of the Stamp Duty Holiday, the months ahead will likely be more difficult as buyers may start to view the market with caution. 
 
“We have already seen the much publicised sub 1.0 per cent mortgage deals begin to disappear, and a rise in interest rates is certainly on the cards. Alongside this, it looks set to be a difficult winter for household finances. Families are facing a steep rise in energy bills and an increase in the general cost of living. 
 
“This squeeze in consumer spending will almost certainly impact people’s ability to save for deposits and ultimately move home. But, for those staying put, now could be a good time to remortgage, as rates remain competitive.”
 
This concern is echoed by Tom Bill, head of UK residential research at Knight Frank, who says ultra-low borrowing costs have underpinned demand - until now. Longer term, there will need to be a readjustment as mortgage rates normalise, a process that has been delayed by the pandemic. Interest rates were 0.75 per cent in early 2020 before Covid struck and we wouldn’t expect any meaningful impact on prices or demand while they remain below that level. 
 
Source Estate Agent Today.