The ONS data found that the average UK house price was at a record high of £270,000 in September 2021, which is £28,000 higher than the same time last year.
Average house prices increased over the year in England to £288,000 (11.5%), in Wales to £196,000 (15.4%), in Scotland to £180,000 (12.3%) and in Northern Ireland to £159,000 (10.7%).
London continues to be the region with the lowest annual growth (2.8%) for the tenth consecutive month.
Kevin Roberts, director at Legal & General Mortgage Club, said: “A rush to beat the stamp duty holiday deadline has clearly kept the housing market busy, with low mortgage rates and a desire amongst buyers for homes with more space driving considerable demand.
“The tapering of the tax break has also encouraged international buyers, in particular, to press ahead with their plans to purchase property.
“In fact, our data shows that demand for lenders that would consider applicants with a visa remained high in September.
“We should celebrate the resilience of the mortgage market, but it’s equally important that we’re mindful of those with challenging financial circumstances, especially with a rate rise looking increasingly likely.
“Homeowners looking to protect themselves against such a rise should seek the guidance of a mortgage adviser.
“These experts can help them to navigate the market and lock into one of the great fixed-rate deals that are still on offer.”
Colin Bell, co-founder and chief operating officer of Perenna, added: “Demand for homes remained strong throughout September, with buyers rushing to complete before the end of the stamp duty holiday.
“Together with an ongoing lack of housing supply, and now a potential rate rise on the cards, this has pushed up property prices.
“Many buyers will now be concerned that homeownership is getting further out of reach.
“We need a new solution to ensure housing remains affordable for aspiring homeowners.
“Flexible, fixed-for-life mortgages could provide a meaningful alternative to the status quo.
“These mortgages give buyers the opportunity to borrow more to help them step onto the ladder because they offer the certainty that monthly repayments will not change over the lifetime of the loan.
“Long-term fixes are already commonplace in other parts of the world like the USA and Demark, and at Perenna we plan to offer these mortgages in the UK from early next year.”
Nigel Purves, CEO of Wayhome, said: “House prices remain at unprecedented levels, making the goal of homeownership more unobtainable than ever before.
“The truth is that reasonable savings and a good salary are no longer enough and even those with significant deposits are falling short of restrictive lending criteria.
“These constant increases in property values only serve to fuel the affordability crisis in the UK, which continues to disproportionately affect those so-called ‘reluctant renters’ who are still being priced out of homeownership.
“It is imperative that the property market seeks realistic and innovative solutions to help more people get onto the ladder.”
