House prices in the UK have grown 12.1% in the year to September 2014, according to the latest house price index from the Office for National Statistics.
This takes the average UK house price to £273,000 by the end of September 2014 with London continuing to outstrip the rest of the UK in growth.
London house prices grew 18.8%,, while the East of England had a 13.4% growth and the South East of England saw prices rise 11.6%.
House Price Growth By Region
England: House prices in England have grown 12.5%, but when excluding London and the South East this figure falls to 9.1%. The average house price in England is now £285,000.
Scotland: There was a 7.6% increase in house prices over the same period and the average house price has reached £197,000.
Northern Ireland: House price inflation reached 10.9%, taking the average price of a house in the country to £143,000.
Wales: The lowest regional increase with just a 5.8% rise in annual house prices, with an average house price is of £172,000
First time buyers are now having to pay 13.3% more on average than they did last year, which compares to 11.5% more being paid by existing home-owners.
The rise in house prices gives hope for the economy, with the consumer price index having recently stated there was a rise in inflation from 1.2% in October to 1.3% in September.
How House Prices Affect Debt Levels
The rise in house prices could be a positive sign for those people who have a mortgage which they are struggling to repay due to debts or other financial problems.
As house prices rise it lowers the chance of people being trapped in a property which they cannot sell due to negative equity. Having equity in a property can allow people to sell their property, clear debt or re-mortgage to free up money tied in their house.
If someone does have a mortgage which they are struggling to repay it’s vital they seek immediate debt advice before any further action is taken by their lender.
Call Debt Support Trust on 0800 085 0226.