British house prices rise 3.8%

House prices in Britain continued to increase in September with London leading the country in the property price rise, official figures issued on Tuesday showed. The Office for National Statistics (ONS) said house prices in Britain increased by 3.8 percent in the 12 months to September, up from 3.7 percent a month ago. Average house prices increased in eight of the nine English regions over the year to September, with the largest increase registered in London at 9.4 percent, followed by the South East at 4 percent and Yorkshire and The Humber at 3 percent. Average house prices in September stood at 255,000 pounds (404,962 U.S. dollars) in England, 163,000 pounds in Wales, 127,000 pounds in Northern Ireland and 181,000 pounds in Scotland. In September, London continued to be the English region with the highest average house price at 434,000 pounds (689,264 U.S. dollars) and the North East had the lowest average house price at 146,000 pounds. Despite the house price rises, the ONS said house price growth remained stable across most of the country. The latest house price index report released by lender Halifax said the continuous rises of house prices in Britain was boosted by the low level of mortgage payments. Halifax, now part of the Lloyds Banking Group, said in its monthly house price index report that house prices in the three months to October increased by 1.6 percent compared with the previous three months. "Demand has increased this year, putting upward pressure on house prices and increasing levels of activity," said Martin Ellis, Halifax housing economist. He believed that the low interest rates, and higher consumer confidence supported by the increasing evidence that a sustainable economic recovery were the main factors contributing to increased housing demand. The government-supported schemes, such as Funding for Lending and Help to Buy, also appeared to have boosted demand, Ellis said.