UK house prices have continued to climb, up 2.4% versus this time last year and the fastest rate of annual growth seen since December 2022 when a 2.8% annual increase was recorded.
This means the typical home is around £6,000 more expensive than what it was this time last year, and stands at £265,375, latest figures from Nationwide reveal.
Robert Gardner, Nationwide’s Chief Economist, says: “UK house prices fell by 0.2% month on month in August, after taking account of seasonal effects, but the annual rate of house price growth continued to edge higher.
“Average prices were up 2.4% year on year, a slight pickup from the 2.1% recorded in July and the fastest pace since December 2022 (2.8%). However, prices are still around 3% below the all-time highs recorded in the summer of 2022.”
RESILIENCE
Robert Gardner, NationwideAnd he adds: “While house price growth and activity remain subdued by historic standards, they nevertheless present a picture of resilience in the context of the higher interest rate environment and where house prices remain high relative to average earnings (which makes raising a deposit more challenging).
“Providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”
BUYER ACTIVITY
Colby Short, GetAgent.co.ukColby Short, Co-founder and Chief Executive of GetAgent.co.uk, says: “Patience has certainly been a virtue for UK home sellers in recent times, but there’s no doubt that they are now being rewarded, as the UK property market continues to demonstrate a high level of resilience with yet another annual increase in property values and the largest increase since December 2022.
“This growth is being driven by an uplift in buyer activity and whilst this has been building since the start of the year, we’ve certainly seen it step up a gear since the general election.”
Ed Phillips, Lomond Chief Executive, adds: “It’s been a story of two halves for the UK property market so far this year, with a tentative first six months seeing a stable but largely static market, whilst the pace has really started to pick up since the July election, with an increase in buyer confidence helping to drive annual house price performance.”
Marc von Grundherr, Benham and ReevesAnd Marc von Grundherr, Director of Benham and Reeves, says: “Summer may be coming to an end but there’s certainly no end in sight when it comes to the improvements being seen across the UK property market.
“It’s quite remarkable just how swiftly the market has accelerated in just a few short months both with respect to the number of mortgage approvals being seen, as well as the increase in the rate of annual house price appreciation.
“Although Labour are now warning of a ‘painful’ budget to come in October, this is unlikely to derail the ambitions of the UK’s buyers and sellers, who are now making their move with confidence following a prolonged period of market uncertainty.”
Verona Frankish, YopaVerona Frankish, Chief Executive of Yopa, says: “Today’s figures provide the first look at house price performance since interest rates were cut at the start of August and despite the very marginal monthly decline, it’s clear that the first reduction in four years has helped to further boost the market momentum, with yet another strong rate of annual house price growth being seen.
“Whilst the base rate remains considerably higher than many buyers and sellers may be accustomed to, the expectation is that another cut will come before the year is out, which should only help to strengthen buyer appetites further.”
