UK house prices rose by 0.7% in September, with this uptick lifting the annual growth rate to 3.2%, the fastest pace since November 2022.
The average UK house price in September is £266,094. Despite this recovery, average prices remain approximately 2% below the all-time highs seen in the summer of 2022, according to figures from lender Nationwide.
Recent trends suggest a positive shift in affordability for potential buyers. “Income growth has continued to outpace house price growth in recent months,” Robert Gardner, Nationwide’s chief economist, said.
He attributed this improvement partly to a decline in borrowing costs amid expectations that the Bank of England will further reduce interest rates in the near future. However, while activity in the housing market is gradually increasing, it remains subdued compared to historical norms.
Data for the third quarter of 2024 reveals that most regions experienced a resurgence in annual house price growth. Northern Ireland emerged as the standout performer, with prices surging by 8.6% compared to Q3 2023. Scotland also demonstrated significant improvement, with annual growth accelerating to 4.3%, up from just 1.4% in the previous quarter. In Wales, prices recorded a more modest year-on-year increase of 2.5%.