The annual rate of UK house price growth stood at 2.2% in September, which is marginally stronger than the 2.1% recorded in August, the Nationwide house price index reveals.
The index shows that prices increased by 0.5% month on month, after taking account of seasonal effects.
Northern Ireland remained the top performing area with annual house price growth of 9.6%.
Meanwhile, outer South East was the weakest performing region, with 0.3% year-on-year rise.
Nationwide’s data by property type shows that semi-detached properties have seen the biggest percentage rise in prices over the last 12 months, with average prices up 3.4% year on year.
Detached and terraced properties saw similar growth, at 2.5% and 2.4% respectively. However, flats saw a small year-on-year decline of 0.3%.
Nationwide chief economist Robert Gardner says: “The broad stability in the annual rate of house price growth over the past three months mirrors that of activity. The number of mortgages approved for house purchase have been hovering at around 65,000 cases per month, close to the pre-pandemic average (despite the higher interest rate environment).”
“Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.”
“Unemployment is low, earnings are rising at a healthy pace, household balance sheets are strong and borrowing costs are likely to moderate a little further if Bank Rate is lowered in the coming quarters as we, and most other analysts, expect.”
“Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead.”
MT Finance director of specialist lender Tomer Aboody states: “We are seeing that despite plenty of negativity surrounding current market conditions, buyers are still transacting, although in smaller numbers than historically. Due to less demand, price growth is minimal but still positive.
“With sentiment in the broader, macro market still uncertain, we could possibly see another rate cut in the next six months, which will give buyers even more encouragement.”
Elsewhere, Together managing director of intermediary sales Tanya Elmaz adds: “A return in positive house price growth is a welcome sign following a few quiet summer months. The question of whether this growth is set to last, however, remains in doubt.”
“While the Bank of England made a base rate cut in August, further rate cuts in the near future may be few and far between should inflation remain elevated.”
“Whilst we at Together have just lowered rates on many of our products, the industry will need to see a bigger shift before rates are dropped widely and fixed-term borrowing becomes more attractive for consumers.”
“The property industry also remains in the dark over potential changes in the tax regime at the Autumn Statement. While rumoured tax changes, such as a potential property tax on houses worth over £500,000, will significantly affect the market, the uncertainty over what’s to come may keep activity subdued until more clarity is provided in the Budget.”
“Despite these challenges, there remain many opportunities for aspiring homebuyers and landlords looking to invest. Those keen to seize an opportunity and move forward with their property plans can consider the wide range of financial products available, like Shared Ownership mortgages specialist buy-to-let mortgages, or bridging loans for fast, flexible finance.”
