Introduction: Fastest annual UK house price growth in two years
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
We start the week with news that UK house prices have risen at their fastest pace since the aftermath of the mini-budget two years ago.
Lender Nationwide has reported that the average UK house price rose by 3.2% in the year to September, the quickest annual increase since November 2022.
On a monthly basis, prices rose by 0.7%, picking up pace after a 0.2% drop in August.
This lifted the average price to £266,094 this month, up from £265,375 in August.
Recent falls in mortgage rates appear to have stimulated the market, with the Bank of England having begun cutting Bank Rate in August.
Robert Gardner, Nationwide’s chief economist, explains:
“UK house prices increased by 0.7% in September, after taking account of seasonal effects. This resulted in the annual rate of growth rising from 2.4% in August to 3.2% in September, the fastest pace since November 2022 (4.4%). 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.
Nationwide reports that prices rose fastest in Northern Ireland, up 8.6% year-on-year in during the last quarter, while East Anglia was the weakest performing region, with prices down 0.8% over the year.
More to follow…
The agenda
-
7am: Nationwide house price index for September
-
7am BST: UK Quarterly Sector Accounts and balance of payments for April-June
-
9.30am BST: Bank of England mortgage approvals and credit data
-
1pm BST: Germany’s inflation report for September
-
2pm BST: ECB president Christine Lagarde appears before the Economic and Monetary Affairs committee of the European Parliament in Brussels
Key events
Terrace house prices rise fastest over last year
If you look at property types, terrace houses have seen the biggest percentage rise in prices over the last 12 months, with average prices up 3.5%, Nationwide adds.
Semi-detached and flats saw increases of 2.8% and 2.7% respectively, while detached houses saw more modest growth of 1.7%.
But since the pandemic, it’s detached homes that have risen the fastest in price, lifted by the ‘race for space’ triggered by Covid-19.
Since the first quarter of 2020, the price of an average detached property increased by nearly 26%, while flats have only risen by around 15% over the same period.
House prices rose in almost all UK regions in the last quarter, Nationwide’s report shows.
Their chief economist, Robert Gardner, says:
“Northern Ireland remained the best performer by some margin, with prices up 8.6% compared with Q3 2023. Scotland saw a noticeable acceleration in annual growth to 4.3% (from 1.4% in Q2), while Wales saw a more modest 2.5% year-on-year rise (from 1.4% the previous quarter).
“Across England overall, prices were up 1.9% compared with Q3 2023. Northern England (comprising North, North West, Yorkshire & The Humber, East Midlands and West Midlands), 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.
Rightmove takeover goes down to the wire….
Today is also D-day in the takeover battle for Rightmove.
Australia’s Rea Group has until 5pm today to table a full-blown takeover bid for the UK property portal, or be forced to walk away. Rea has already tabled four offers for Rightmove, with the latest – worth £6.2bn – coming last Friday.
Rea, which is controlled by Rupert Murdoch’s News Corp, has been urging Rightmove to engage with them, and also pressed for an extension to today’s deadline.
Rea’s latest offer values each Rightmove share at 781p, and the entire company, which is listed on the FTSE 100 share index, at about £6.2bn.
Under City rules, REA has until 5pm to make a firm offer or walk away….
Introduction: Fastest annual UK house price growth in two years
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
We start the week with news that UK house prices have risen at their fastest pace since the aftermath of the mini-budget two years ago.
Lender Nationwide has reported that the average UK house price rose by 3.2% in the year to September, the quickest annual increase since November 2022.
On a monthly basis, prices rose by 0.7%, picking up pace after a 0.2% drop in August.
This lifted the average price to £266,094 this month, up from £265,375 in August.
Recent falls in mortgage rates appear to have stimulated the market, with the Bank of England having begun cutting Bank Rate in August.
Robert Gardner, Nationwide’s chief economist, explains:
“UK house prices increased by 0.7% in September, after taking account of seasonal effects. This resulted in the annual rate of growth rising from 2.4% in August to 3.2% in September, the fastest pace since November 2022 (4.4%). 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.
Nationwide reports that prices rose fastest in Northern Ireland, up 8.6% year-on-year in during the last quarter, while East Anglia was the weakest performing region, with prices down 0.8% over the year.
More to follow…
The agenda
-
7am: Nationwide house price index for September
-
7am BST: UK Quarterly Sector Accounts and balance of payments for April-June
-
9.30am BST: Bank of England mortgage approvals and credit data
-
1pm BST: Germany’s inflation report for September
-
2pm BST: ECB president Christine Lagarde appears before the Economic and Monetary Affairs committee of the European Parliament in Brussels