Nationwide: UK house prices growing at fastest rate since end of 2022
Nationwide have published their latest House Price Index, which shows that UK house prices growing at fastest rate since end of 2022.
Average UK houses prices rose by the fastest pace for two years during September, Nationwide data suggests.
The latest Nationwide House Price Index shows average UK property values rose by 3.2% annually in September and by 0.7% on a monthly basis, putting average values at £266,094.
This is the fastest rate of growth since November 2022 when average values rose 4.4%.
But average prices still remain around 2% below the all-time highs recorded in summer 2022.
It comes as falling mortgage pricing, August’s interest rate cut and hopes of more reductions continue to boost buyer demand.
Most UK regions saw a pickup in annual house price growth during September.
Northern Ireland recorded the highest level of growth, with average prices up 8.6% compared with the third quarter of 2023.
Average prices in Scotland rose 4.3% annually, while Wales saw a more modest 2.5% year-on-year rise.
Across England overall, typical prices were up 1.9%. The North-West was the best performing English region, with prices up 5.0% year-on-year.
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 fall, with prices down 0.8%.
Terraced houses have seen the biggest percentage rise in prices over the last 12 months, with average prices up 3.5% in September, according to Nationwide.
Semi-detached homes and flats saw increases of 2.8% and 2.7% respectively, whilst detached houses saw more modest growth of 1.7%.
Robert Gardner, chief economist at Nationwide, said:
“Income growth has continued to outstrip house price growth in recent months while borrowing costs have edged lower amid expectations that the Bank of England will continue to lower interest rates in the coming quarters.
“These trends have helped to improve affordability for prospective buyers and underpinned a modest increase in activity and house prices, though both remain subdued by historic standards.”
Commenting on the index, Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, said:
“Plenty of new stock is coming to market, which is standard for this time of year, with well-priced properties attracting interest from buyers.
“We are agreeing a lot of sales at asking price, just under or even slightly over.
“While sellers may be encouraged by these price rises, we find if a property is too highly priced, applicants don’t waste their time and view.
“So, if a property isn’t getting viewings, it is likely to be down to price, and the best advice we can give is to bring that price down to the market level.”
Tom Bill, head of UK residential research at Knight Frank, said:
“Falling mortgage rates led to an increase in house price growth in September, with demand also boosted by buyers putting off decisions until after the election.
“However, the mood has since turned more cautious ahead of the Budget following suggestions by the government it will be painful.
“We think prices will end the year a few percent higher, but sellers should be aware that buyer exuberance will be in short supply in the final months of the year.”
Kindly shared by Estate Agent Today
