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UK house prices leap £5,583

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Average property prices in the UK have shot up in the past month, according to Sequence.

The estate agency group, which includes more than 300 branches including Barnard Marcus, calculates that average house prices in the whole country grew by 3% between September and October this year, with an annual increase of 11%, to stand at an average of £209,923.

London grew by 4% in the month and 10% annually to stand at an average of £404,199. Sales transactions in the capital rose by 9% in the month and 57% over the year.

Sequence also found that there are now almost seven buyers for every property for sale in the UK, the highest level since records began and an indicator of demand outstripping supply to an unprecented level.

David Plumtree, chief executive at Sequence, said:

“The appetite to buy property across the UK has risen to record levels, with almost seven new buyers for every new property coming onto the market. This has impacted on property prices as competition for every new instruction intensifies and we have seen the average house price rise by 3% in October which equates to £5,583 in one month alone and 11% annually.

“In London where close to 14 people are competing for every property, prices have risen by 4% on month and 10% annually. This has taken the average price of a London property above the £400,000 threshold for the first time since our records began.

“In spite of rising prices, there has been a surge in mortgage applications across the board, demonstrating that buyers are still willing and able to buy. Increasingly attractive mortgage rates and incentives such as Help to Buy are fuelling the drive in demand and as long as this continues, we can expect to continue to see prices rising.”