September has seen the fastest annual house price growth in around two years, according to an index. UK house prices increased by 0.7% in September, Nationwide Building Society said. This resulted in the annual price growth rate accelerating from 2.4% in August to 3.2% in September, the fastest pace since November 2022 when there was a 4.4% rise. The average UK house price in September is £266,094.
Property values in Northern Ireland performed the most strongly for annual growth in the third quarter of this year, with prices up by 8.6% year-on-year, Nationwide said. East Anglia was the weakest performing region, with prices down by 0.8% over the year. Robert Gardner, Nationwide’s chief economist, said: “Average prices are now around 2% below the all-time highs recorded in summer 2022.”
“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.”
Scotland saw a noticeable acceleration in annual growth to 4.3%, while Wales saw a more modest 2.5% year-on-year rise. Across England overall, prices were up 1.9% compared with the third quarter of 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 rise. London remained the best performing southern region with annual price growth of 2.0%. Terraced houses have seen the biggest percentage rise in prices over the past year, with average prices up by 3.5%, according to Nationwide’s most recent data by property type. Semi-detached and flats saw increases of 2.8% and 2.7% respectively, while detached houses recorded growth of 1.7%.
The property market has rebounded with positive price growth, boosting buyer sentiment and keeping the market active. Various industry experts commented on the market conditions, with expectations for continued activity and growth. The improvement in affordability and stable interest rates have contributed to the positive momentum in the housing market.
Looking ahead, industry professionals are optimistic about the market’s performance, with expectations of sustained activity and favourable mortgage deals. The resilience of the property market, coupled with improving buyer confidence, suggests continued growth in the coming months. While challenges remain, such as transactional volumes, the overall outlook for the property market appears positive.