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East of England Leads October House Price Growth

Property prices have experienced their highest increase since the first quarter of 2016, according to a new index.

East of England Sees Highest House Price Growth in October

Property prices have experienced their highest increase since the first quarter of 2016, according to a new index.

The LSL Property Services/Acadata house price index has revealed that property prices across England and Wales rose month-on-month by 0.4% in October, bringing the average property price across the two countries to £249,351.

The sharp rise in house prices marks the strongest level of growth in the index since the introduction of the new 3% Stamp Duty surcharge for second homes and property investments in April this year.

However, whilst the monthly figures indicate strong growth, the year-on-year figures fell from last month’s numbers, with prices just 3% higher than they were in October 2015 – down from the annual increase of 3.7% seen September.

Regionally, the East of England was the driving force behind the growth, with property prices up by 7% year-on-year, followed by the South East and the South West, where property values rose by 6.5% and 5% respectively.

As was highlighted in the Halifax and Nationwide property indices earlier this month, the biggest challenges have been found in London.

The LSL/Acadata report, which utilises the most recent data from September 2016 for its London figures. shows that the the region generated a year-on-year increase of 0.9%. This is the lowest annual increase that Greater London has seen since Q1 2012, with the average property price now standing at £579,378 in the region.

Across the five highest priced boroughs in London, property prices fell by 8.6% year-on-year – an average decline in value of £108,050. However, in the remaining boroughs, the average remains in line with the national trend, as prices rose by 3.7% on average in the year to September.

Last week, housebuilder Barratt Developments highlighted that the challenges facing the prime London market, revealing that they have reduced price of properties valued over £1 million to generate interest from purchasers.

The impact of the stamp duty reforms and Brexit on the London market has also led to a number of organisations calling for chancellor Philip Hammond to not only address the UK's housing shortage, but to focus on growing the private rental sector in his first Autumn Statement address, due to take place at midday tomorrow.

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