The latest data shows that average prices are around 2% below the all-time highs recorded in summer 2022.

Nationwide chief economist Robert Gardner says that most regions saw a pickup in annual house price growth.

Northern Ireland remained the top performer with prices up 8.6% compared with Q3 2023.

Scotland saw annual price growth of 4.3% while Wales saw a 2.5% year-on-year rise.

Across England overall, prices were up 1.9% compared with Q3 2023.

Northern England continued to outperform southern England, with prices up 3.1% year-on-year.

The North West was the best performing English region, with prices up 5.0% year-on-year.

Southern England saw a 1.3% year-on-year rise. London remained the best performing southern region with annual price growth of 2.0%.

East Anglia was the only UK region to record an annual price fall, with prices down 0.8% year-on-year.

Gardner states: “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.”

Fine & Country managing director Nicky Stevenson states: “UK house prices saw their strongest annual growth in two years this September — up 3.2% — a positive sign that the economy is stabilising.”

“As we head into autumn, we expect the market to gain even more momentum, driven by lower interest rates, steady inflation, and an uptick in buyer demand.” “Two years after the upheaval of Liz Truss’s mini-budget, mortgage rates have been steadily declining, drawing some hesitant buyers back into the market. But ongoing affordability challenges mean many are focusing on areas where they can maximise value for money.”

Meanwhile, Quilter financial planner Holly Tomlinson adds: “The latest house price data from Nationwide shows that house prices saw a large 0.7% growth in September, resulting in an annual rate of 3.2% representing the fastest growth in two years.”

“This follows a trend of moderate gains, even as the traditional summer lull typically cools activity. The latest property statistics for August 2024 highlight this resilience, with residential transactions standing at 90,210, a 5% increase from the same period last year, though down slightly compared to July.”

“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.”

“Fixed-rate and tracker mortgage options continue to present a key decision point for many buyers. While fixed-rate deals provide much-needed certainty, particularly in these unpredictable times, they remain elevated compared to pre-pandemic levels with many people likely shocked when they come to remortgage.”

“As a result, more people are now choosing to look at tracker mortgage deals as they bide their time before fixing later down the road, but this must be weighed against potential early repayment charges.”

“The upcoming Labour budget is likely going to have a limited impact on further buoying the property market. With the government primarily focused on addressing broader fiscal challenges, including a £22bn fiscal shortfall, significant housing stimulus seems unlikely at this stage. However, this morning’s results show that organically house prices are returning to a strong upward trajectory.”

MT Finance director Tomer Aboody says: “A strong September has seen prices increase to very close to the highest recorded levels from 2022.”

“With mortgages at a more affordable levels and the Bank of England expected to reduce rates again, we are hoping for a strong final quarter, although the autumn Budget is yet to come and we have already been warned.”