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UK house prices rose at their fastest annual pace for two years in September, in a sign of the impact of falling mortgage rates on the property market.
The average property price rose by an annual rate of 3.2 per cent, up from 2.4 per cent in August and the fastest rate since November 2022, according to new figures from mortgage lender Nationwide.
Economists polled by Reuters had expected a rise of 2.7 per cent.
On a monthly basis, the rise was 0.7 per cent, bringing the UK’s average house price to £266,094, about 2 per cent below the all-time highs recorded in the summer of 2022.
Robert Gardner, chief economist at Nationwide, said increases in incomes had continued to outstrip the rise in house prices in recent months, while borrowing costs had edged lower amid expectations that the Bank of England would continue to lower interest rates.
“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,” he said.