9:17 AM, 30th September 2024, About An hour ago
Text Size
UK house prices recorded their fastest annual growth in two years in September, rising by 3.2% year-on-year, up from 2.4% in August, according to Nationwide.
Northern Ireland led the way with an 8.6% increase in prices in the third quarter, while East Anglia was the weakest performer with a 0.8% decline.
Nationwide’s data by property type reveals that terraced houses have seen the biggest percentage rise in prices over the last 12 months, with average prices up 3.5%.
Semi-detached and flats saw increases of 2.8% and 2.7% respectively, while detached houses saw modest growth of 1.7%.
The lender’s chief economist, Robert Gardner, 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.”
He added: “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.”
Across England, prices were up 1.9% compared with the third quarter of 2023 – northern England outperformed southern England, with prices up 3.1% year-on-year.
The North West was the best performing English region, with prices up 5.0%.
Southern England saw a 1.3% year-on-year rise and London remains 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.
Matt Thompson, the head of sales at Chestertons, said: “Pent-up demand, lower interest rates and sub-4% mortgage products resulted in more house hunters entering the market in September.
“In response to the uplift in buyer activity, and with looming changes to Capital Gains Tax in the upcoming Autumn Budget, we have also seen more sellers putting their property up for sale.
“We expect September’s level of market activity to continue in October but sellers will review their position following the Autumn Budget whilst some buyers await the next Bank of England announcement on interest rates in November.”
Nathan Emerson, Propertymark’s chief executive, said: “As 2024 has progressed, it has been extremely positive to see a firm trend of growth emerge across the year within the housing market.
“We have seen the economy settle down to a position that provides far greater consumer confidence and although we are still at the very start of the journey regarding base rates, we are starting to see lenders introduce improved competitive offerings when it comes to mortgage deals, which is a firm foundation for confidence and growth over the coming months.”
Sarah Coles, the head of personal finance at Hargreaves Lansdown, said: “Buyers were back with a bang, prompting a September surge.
“This time of year is always fairly busy, but falling mortgage rates and wages outstripping inflation have prompted a burst of enthusiasm which has pushed prices up to within 2% of their pandemic-induced peaks.
“These aren’t runaway price rises, but they’re firmly positive, which always helps boost buyer sentiment and keep the wheels rolling on the property bandwagon.”
Previous Article
Landlords urged to install EV chargers to boost income
