September has seen the fastest annual house price growth in around two years, according to Nationwide’s latest index, with average London house prices hitting £524,685. The market has been strengthening across the country throughout the third quarter of the year, but “London remained the best performing southern region”, according to Robert Gardner, Nationwide’s chief economist. Breaking down the data by property type, terraced houses (of which the capital has a significant stock) have seen the biggest percentage rise in prices over the past year, with average prices up by 3.5%.

"Pent-up demand, lower interest rates and sub-4% mortgage products resulted in more house hunters entering the market in September"

Matt Thompson, Head of Sales at London estate agents Chestertons, welcomed the housing market boost, saying: “Pent-up demand, lower interest rates and
sub-4% mortgage products resulted in more house hunters entering the market in September.”

Jeremy Leaf, a North London estate agent said: “The market has changed and demand is improving which has coincided with lower mortgage rates and a more settled picture for inflation and politics. This shift has resulted in more appraisals, listings, offers and firming pricing.”