UK average house prices increased by 11.8% over the year to September 2021, up from 10.2% in August, according to the UK House Price Index published by the Office for National Statistics.

The average property price hit a record high of £270,000 in September 2021 – £28,000 higher than this 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.

Lewis Shaw, founder of Mansfield-based Shaw Financial Services, said: “On the surface, all is well with the property market. But make no mistake: we’ve not seen the true financial impact of COVID or Brexit yet, and 2022 could prove to be a volatile ride for bricks and mortar.”

Stuart Law, CEO of the Assetz group, added: “Today’s data shows a predictable increase in house price growth as changes in working patterns and lifestyle priorities continue to fuel demand. However, this trajectory may be more nuanced moving forward as the Government continues to press ahead with its green agenda post COP 26.

“With increased focus on the energy efficiency of our homes, the value of newer-build houses – which are more likely to be better insulated and equipped with solar panels and ground or air source heat pumps – is likely to increase. This will be exacerbated further by growing consumer demand for more environmentally friendly homes which can be run more cheaply than traditional housing, with the value of a high EPC rating on a new-build home potentially accounting for at least £20-30k of the price of the property.

“Conversely, there will be challenges ahead for older homes which are harder and more expensive to retrofit with energy efficient technology and are therefore expected to depreciate in value over the coming years as mortgage lenders reduce appetite. The disparity between the value of new builds versus older properties is already becoming clear. Over the last year, the average price of new builds has gone up 14% while the value of older properties has only risen by 5.5%. We expect this gap to continue to grow.”