Annual House Price growth up to 5%

The Nationwide House Price Index has now been released for September indicating annual price growth accelerating to 5.0% in September, the highest rate since 2016

Prices rose 0.9% month-on-month, after taking account of seasonal factors and most regions saw a pickup in house price growth rates in Quarter 3 this year. The average house price is now standing at £226,129 according to the Nationwide figures.

Robert Gardner, Nationwide’s Chief Economist, commented: “UK house prices increased by 0.9%month-on-month in September, after taking account of seasonal effects, following a 2.0% rise in August.  As a result, there was a further pick up in annual house price growth from 3.7% in August to 5.0%in September the highest level since September 2016.

“Housing market activity has recovered strongly in recent months. Mortgage approvals for house purchase rose from c66,000in July to almost 85,000 in August-the highest since 2007, well above the monthly average of 66,000 prevailing in 2019.

“The rebound reflects a number of factors. Pent-up demand is coming through, with decisions taken to move before lockdown now progressing. The stamp duty holiday is adding to the momentum by bringing purchases forward. Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown.

“Interestingly, around 10% of those surveyed in September said they were in the process of moving as a result of the pandemic, with a further 18% considering a move for the same reason. This pattern was evident across the country, especially in London

“Of those moving or considering a move, 35% were looking to move to a different area, while nearly 30% were doing so to access a garden or outdoor space more easily”