House prices in England and Wales increased by 0.7% in September, according to e.surv Chartered Surveyors’ house price index (formerly the LSL Acadata House Price Index).

House prices showed an average annual increase of 3.4% in September 2020, with the highest monthly growth regionally seen in Greater London (2.6%).

The average house price in England and Wales now sits at £311,624, up from £309,584 in August.

Industry reacts to August rise in house prices

House prices in 2020 his a low-point of £300,590 in May.

Richard Sexton, director at e.surv, said: “Three months since it was announced in July, we are seeing the full effects of the stamp duty holiday.

“The temporary pause on the tax has kept activity in the market at a high level, following the release of pent-up demand from earlier in the year.

“This strong market activity is likely a contributing factor behind the continued house price rises sweeping England and Wales.

“On average, house prices have risen 3.4% since June, which was the last full month before the introduction of the measure.

“An additional factor driving growth has been the growing popularity of larger properties, as many in the UK come to terms with the prospect that they may continue working from home for a much longer period than was first expected.

“Despite the healthy appearance of the market, there is some cause for concern around access to housing for first time buyers.

“With lenders becoming more cautious, the higher LTV products which new buyers frequently rely upon to get onto the property ladder have become fewer and further between.

“The Prime Minister’s recent conference commitment to increase the supply of 95% mortgages to ‘generation rent’ is an interesting proposition but requires more detail before any meaningful analysis of likely impacts can be undertaken.

“As the high volume of market activity continues amid a global pandemic that is far from beaten, e.surv will continue to support the market with adaptable and creative valuation solutions, which prioritise above all the health of our customers, our colleagues and the wider public.”