In September the UK experienced the swiftest annual growth in house prices in nearly two years, as reported by Nationwide Building Society. The average house price in the UK rose by 0.7% in September, leading to an annual growth rate surge from 2.4% in August to 3.2% in September, marking the fastest acceleration since November 2022 when there was a 4.4% rise. The average house price in the UK reached £266,094 in September.
Nationwide also stated that property values in Northern Ireland showed the strongest annual growth in the third quarter of this year, with prices soaring by 8.6% year-on-year. Conversely, East Anglia was the weakest-performing region, with prices dipping by 0.8% over the same period.
Robert Gardner, Nationwide’s chief economist, noted that average prices currently sit around 2% below the all-time highs recorded in the summer of 2022. He attributed this growth to income outpacing house price growth in recent months and reduced borrowing costs amid expectations of further interest rate cuts by the Bank of England.
Scotland experienced a significant acceleration in annual growth to 4.3%, compared to 1.4% in the previous quarter. Meanwhile, Wales observed a more modest 2.5% year-on-year rise. Across England as a whole, prices were up by 1.9% compared to the third quarter of 2023. Northern England outperformed the south, with prices in the North West rising by 5.0% year-on-year.
Terraced houses saw the largest percentage rise in prices over the past year according to Nationwide’s data, with average prices up 3.5%. Semi-detached and flats experienced increases of 2.8% and 2.7% respectively, while detached houses recorded growth of 1.7%. The recent rise in prices has boosted buyer sentiment and maintained market activity.
Industry experts have commented positively on the market conditions, noting increased inquiries, offers, and sales agreed. They highlighted factors such as lower mortgage rates, improved affordability, and a stabilised economic and political landscape as contributing to the current positive trend in the housing market.
Looking ahead, experts predict continued market activity with sellers reviewing positions post the autumn Budget and buyers awaiting news on future interest rates in November. The varying pace of recovery across regions further emphasises the strength of buyer demand and the importance of value in the market.
Nationwide provided a breakdown of average house prices and their annual change for various regions in the three months leading up to September. Notably, the property market remains resilient, with house prices increasing at their fastest rate in two years, closely approaching historic record highs.
The latest data indicates a competitive market with positive growth trends, signaling a promising outlook for the housing market in coming months. As lenders introduce more competitive mortgage deals and buyer confidence remains high, the future of the UK property market appears optimistic.
As the industry prepares for the year-end and assesses market dynamics, the positive growth in house prices and sustained buyer interest provide a positive outlook for the UK housing market.