UK house prices rose by 0.7% in September, boosting the annual growth rate from 2.4% in August to 3.2% in September—the fastest pace recorded since November 2022 (4.4%). Average prices are now just 2% below the all-time highs of summer 2022.
UK house prices rose by 0.7% in September, boosting the annual growth rate from 2.4% in August to 3.2% in September—the fastest pace recorded since November 2022 (4.4%). Average prices are now just 2% below the all-time highs of summer 2022.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, highlighted the role of income growth and easing borrowing costs. “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,” he said. These factors, Gardner noted, have helped improve affordability for prospective buyers, leading to a modest rise in activity and house prices, though both remain subdued by historic standards.
"Income growth has outpaced house price growth, improving affordability for prospective buyers"
Looking ahead, London Richmond predicts further gains in the property market. With UK house prices expected to climb in Q4 2024, the agency anticipates the market reaching new peaks next year. For investors, the message is clear: now is the time to act.
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.
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 September data from online portal Zoopla showed that UK property sales volumes were at their highest level since pandemic restrictions were lifted in 2020.