House price inflation jumped from 8% in September to 8.6% in October, according to the Department for Community and Local Government?s (DCLG) most recent house price report. The rise brings annual house price inflation to a 19-month high, proving that the market is not cooling this winter.
However although the figures record faster house price inflation, they also register a 0.2% drop in house prices. But since prices fell by 0.8% in October last year, property experts do not see this as a cause for concern. ?Despite the latest wobble, the data suggests that the underlying price pressures in the market are stronger than last year,? said Ed Stansfield from Capital Economics.
House price inflation in London reached double digit figures for the first time since June 2004, according to the DCLG report and in Northern Ireland inflation broke the 30% barrier.
Although the report shows transactions that are unlikely to have been affected by interest rate rises in August and November, property experts do not believe the increases have had a notable effect on the market. ?Data from Rightmove, showing that asking price inflation reached a two-year high of 13% in December, does not suggest that higher interest rates have yet had much impact,? commented Mr Stansfield.