House prices boom in September
The UK housing market enjoyed a boom during September, with prices shooting through the roof, according to new figures from Nationwide.
Nationwide's figures show that the average value of a property in the UK grew by 1.3 per cent during September - the fastest rate of growth since January.
Fionnuala Earley, Nationwide's group economist commented: "Just like the weather, the housing market was unseasonably warm in September as August’s interest rate hike did nothing to cool the rate of house price inflation."
This increase comes on the back of a 0.9 per cent increase in July and 0.8 per cent growth in August, meaning that UK house prices are now, on average, 8.2 per cent higher than in September 2005.
House prices have grown by an average of £13,000 over the last 12 months, equivalent to £35 per day, taking the average value of a UK property to some £169,413.
But not all of this growth has been fuelled by demand for private housing, as buy-to-let landlords are extending their portfolios.
"Around two thirds of existing landlords have plans to extend their portfolios and many have access to finance from gearing their existing portfolios," Ms Earley explained.
The rising cost of house prices has also meant that parents are increasingly forced to help their children with a deposit.
Nationwide revealed that homeowners are increasing their borrowing by around ten per cent when remortgaging, releasing on average £11,500 to help their children towards buying their first home.
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