The average cost of a home in the UK has jumped by more than a typical British annual pay packet in the last year, according to new figures.
House prices have risen by around £36,000, according to the Office for National Statistics, putting another obstacle in the way of those looking to buy their first home.
The average price of a UK home in August was £296,000, while the average cost of a house in England is £316,000 forcing many to rent properties rather than buy.
The rising demand for housing teamed with soaring inflation – which rose to 10.1% in September 2022 from 9.9% in August, returning to the 40-year high hit in July – has seen landlords scrambling to increase rents.
Private rental prices paid by tenants in the UK has risen by 3.6 per cent in the 12 months to September 2022.
Surging energy price rises coupled with continued Bank of England interest rate rises have been expected to hit household finances, and there were signs that the housing market was losing momentum.
The stamp duty cut announced in September was intended to benefit first-time buyers by making property more affordable, but the market uncertainty caused by the mini-budget led to significant mortgage rate hikes, forcing lenders to pull their products and making them available again but with higher rates.