The latest data shows that average prices are nearly 2% below the all-time highs recorded in summer 2022
The annual rate of UK house price growth went up from 2.4% in August to 3.2% in September, the fastest pace since November 2022, according to Nationwide’s latest house price index.
The latest data shows that average prices are nearly 2% below the all-time highs recorded in summer 2022.
Nationwide chief economist Robert Gardner says that most regions saw a rise in annual house price growth.
Northern Ireland remained the top performer with prices up 8.6% compared with Q3 2023.
Scotland saw annual price growth of 4.3% while Wales saw a 2.5% year-on-year rise.
Across England overall, prices were up 1.9% compared with Q3 2023.
Northern England continued to outperform southern England, with prices up 3.1% year-on-year.
The North West was the best performing English region, with prices up 5.0% year-on-year.
Southern England saw a 1.3% year-on-year increase. London remained the best performing southern region with annual price growth of 2.0%.
East Anglia was the only UK region to record an annual price drop, with prices down 0.8% year-on-year.
Gardner says: Income growth has continued to outstrip house price growth in recent months while borrowing costs have dropped amid expectations that the BoE will continue to reduce interest rates in the coming quarters.
These trends have helped to improve affordability for prospective buyers and underpinned a modest rise in activity and house prices, though both remain subdued by historic standards, he said.
Fine & Country MD Nicky Stevenson says: UK house prices saw their strongest annual growth in two years this September — up 3.2% — a positive sign that the economy is stabilising.
As we head into autumn, we expect the market to gain even more momentum, driven by lower interest rates, steady inflation, and an increase in buyer demand, she says.
Two years after the upheaval of Liz Truss’s mini-budget, mortgage rates have been steadily dropping, drawing some hesitant buyers back into the market. But ongoing affordability challenges mean many are focusing on areas where they can maximise value for money, she said.
