The UK housing market is showing fresh signs of life. Indeed, UK house price growth regained momentum in September. This positive shift follows a slight dip the previous month. Leading mortgage lender Nationwide reported this encouraging data. Consequently, the property market appears surprisingly resilient. Moreover, underlying conditions continue to support potential buyers.
Specifically, the average UK house price increased by 0.5% last month. This recovery comes after a 0.1% decline recorded in August. Therefore, the typical home now costs £271,995. Annually, price increases also accelerated modestly. House prices rose 2.2% in the year to September. This figure is up from 2.1% in the year to August. So the market is demonstrating steady annual expansion.
Robert Gardner, Nationwide’s chief economist, commented on the figures. He noted a period of “broad stability” for the market. Importantly, housing activity appears consistent with this trend. Mortgage approvals for home purchases are holding steady. They are hovering around 65,000 per month. This level is notably close to the pre-pandemic average. This stability persists despite significantly higher interest rates.
Gardner highlighted several supportive factors for buyers. Firstly, the UK unemployment rate remains low. Secondly, household earnings are rising at a healthy pace. Furthermore, household balance sheets are generally strong. These elements collectively bolster purchasing power. Additionally, borrowing costs may soon provide more relief. Most financial analysts predict the Bank of England will lower its rate. This would likely happen in the coming quarters. Such a move would reduce mortgage costs for new borrowers.
Therefore, the outlook for the housing market seems cautiously optimistic. The current UK house price growth reflects this supportive foundation. Providing the wider economic recovery continues, activity should strengthen. Gardner expects a gradual improvement in the quarters ahead. So the property market seems poised for a sustained, if slow, upturn. The resilience of UK house price growth continues to defy broader global uncertainties. Ultimately, stable domestic conditions are fueling this steady performance.
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