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.
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.”
November marked the fifth consecutive monthly UK house price rise and the biggest leap so far this year, according to Halifax. The mortgage lender said property values were up 1.3% compared with October.
We expect positive price growth this year – in a climate of falling mortgage rates, improving affordability and the release of some pent-up demand. Rightmove reported that first-time buyer demand in the capital in September 2024 was 28% ahead of 2023, moving up to 31% after the autumn budget.
International property company JLL has said it expects Greater London house prices to increase by 22% over the next 5-years, beating nationwide UK growth predictions of 20% over the same time span. The firm added that within those headline figures, it expected lower value markets to see stronger growth towards the beginning of the period, with more expensive markets like London and the South East outperforming in the second half.