Over the last month alone average prices rose by 0.7% meaning a typical UK property is now £266,094 according to Nationwide’s data.
Northern Ireland saw the biggest leap in annual house prices, recording an 8.6% jump in September. Meanwhile, the weakest area for property price growth was East Anglia where values fell by 0.8% over the year.
Robert Gardner, chief economist at Nationwide, said average prices were 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 reported most regions saw a ‘pickup’ in annual house price growth in September. Whilst Northern Ireland showed the strongest growth, Scotland also stood out with prices increasing over the year by 4.3% – this compared to annual growth of 1.4% at the end of June.
Terraced houses increased by the biggest percentage in the last year, with average prices up 3.5%. Semi-detached and flats saw increases of 2.8% and 2.7% respectively. Whilst detached houses saw more modest growth of 1.7%.
Property market resilience
This data comes as residential transactions – the number of homes sold – increased by 5% in August compared to the same period last year.
Holly Tomlinson, financial planner at Quilter, said these factors were evidence of a more ‘resilient’ property market.
She added: “As economic conditions begin to stabilise, both buyers and sellers are finding that they are more compelled to get house hunting again helping to stimulate this growth in prices.
“The Bank of England’s recent move to hold the base rate steady, while not transformative to mortgage rates, does continue to provide stability to the market and will continue to help more competitive mortgage deals re-enter the market.
“Lenders are competing to attract custom, and a more stable environment is likely to mean they go further with rate cuts.”
