The UK average house price has grown 2.2% on an annual basis as activity picks up despite broader concerns about the economy, according to the latest data from Nationwide.
The 2.2% annual growth rate in September represented an acceleration from the 2.1% recorded in August.
“The annual pace of UK house price growth was little changed in September at 2.2%, marginally stronger than the 2.1% recorded in August. Prices increased by 0.5% month on month, after taking account of seasonal effects,” explained Robert Gardner, Nationwide’s Chief Economist.
“The broad stability in the annual rate of house price growth over the past three months mirrors that of activity. The number of mortgages approved for house purchase have been hovering at around 65,000 cases per month, close to the pre-pandemic average (despite the higher interest rate environment).
“Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.”
Industry experts pointed to the Bank of England’s interest rate cut and ongoing undersupply of new homes as other factors that would provide support for the housing market in the coming months.
“Today’s data underscores the resilience and appeal of the UK property sector. Despite elevated inflation and stubborn borrowing costs, we welcomed the BoE’s recent rate cut as a hopeful first step in a much-needed easing cycle,” said Tom Brown, Managing Director, Real Estate.
“There’s clearly a significant and notable shortage of housing inventory across various price brackets and locations.”
Northern Ireland continued to be the powerhouse for house price growth, with the region storming ahead by 9.6% on a quarterly basis. London house prices grew at a meagre 0.6% over the same period.