UK house prices rose 2.9% in the year to September, according to the latest data from the Office for National Statistics (ONS). This marks a faster pace from the 2.7% annual growth recorded in August, with the average home now valued at £292,000.

Regionally, house price growth varied. In England, the average property price climbed to £309,000, reflecting a 2.5% annual increase. Meanwhile, house prices in Wales saw a much smaller increase of 0.4%, bringing the average price to £217,000. In Scotland, however, property prices surged by 5.7%, reaching an average of £198,000. Northern Ireland saw the most substantial annual rise, with house prices up 6.4%, bringing the average to £185,000 for the period between April and June.

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The rental market also showed signs of pressure. Private rents across the UK increased by 8.7% in the 12 months leading up to October, slightly up from the 8.4% growth recorded in September. While this marks a decrease from the record-high 9.2% surge in March, it still signals significant inflation in rental costs.

Nathan Emerson, chief executive of Propertymark, the association representing estate agents, highlighted the growing concern among agents regarding the lack of rental stock. "Our members continue to emphasise key concerns about the ongoing trend of lack of rental properties versus the ever-growing number of tenants searching for homes," he said. He pointed out that many landlords are increasingly attracted to selling their properties or turning to the short-term letting market, driven by the mounting legislative challenges and financial burdens they face.

Sarah Coles, personal finance columnist at Yahoo Finance UK and head of personal finance at Hargreaves Lansdown, warned that renters are feeling the strain of continuous cost increases.

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She said: “Renters are stuck in an endless cycle of rising costs. “It’s forcing more to consider living somewhere smaller, in a worse area, or further from work, in order to make ends meet.

“Meanwhile others are considering moving back into shared accommodation. The immediate future looks tough enough, as rents continue to spiral, but what’s worse is that there’s no clear signal that this is ever going to end.”

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