UK (Parliament Politics Magazine) – Nationwide says UK property values rose 0.5% in September, with semi-detached homes leading, while Northern Ireland led yearly growth at 9.6%.
As reported by The Independent, Nationwide Building Society said the average Britain house price climbed 0.5% in September, rebounding from a slight 0.1% fall in August.
What did Nationwide figures reveal about UK house price growth?
The building society reports UK property values climbed 2.2% annually in September, following 2.1% growth in August. It said the average UK home price reached £271,995 in September.
Northern Ireland remained the top performer in UK property values, with Q3 growth of 9.6%, Nationwide reports.
Annual house price growth in Wales increased to 3.0% in Q3, while Scotland’s pace slowed to 2.9% from 4.5% in the previous quarter.
Robert Gardner’s views on the UK housing market outlook
Robert Gardner, Nationwide’s chief economist, stated,
“Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.”
He said,
“Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead.”
Mr Gardner stated,
“England saw a further slowing in annual house price growth to 1.6%, from 2.5% in (the second quarter). Average prices in northern England (including the North East, North West, Yorkshire and the Humber, East Midlands and West Midlands) were up 3.4% year-on-year.”
He said annual house price growth in southern England slowed to 0.7%, with notable “softening” in the Outer Metropolitan and Outer South East areas.
Mr Gardner stated,
“Our most recent data by property type shows that semi-detached properties have seen the biggest percentage rise in prices over the last 12 months, with average prices up 3.4% year-on-year.”
He said,
“Detached and terraced properties saw similar growth, at 2.5% and 2.4% respectively. However, flats saw a small year-on-year decline of 0.3%.”
Mr Gardner added,
“Looking over the longer term, flats have seen noticeably weaker growth than other property types in recent years. For example, over the last 10 years, the price of a typical flat has increased by around 20%, less than half of the rise in the price of terraced houses over the same period.”
What did Alice Haine say about UK mortgage rates and outlook?
Alice Haine, a finance analyst at Bestinvest by Evelyn Partners, stated,
“While mortgage rates have eased over the past year, following five Bank of England interest rate cuts, the outlook for further reductions remains unclear.”
She added,
“Average two and five-year fixed rate mortgages are still hovering around the 5% mark, which may be comforting for new buyers but broader economic pressures, including sticky inflation and high gilt yields, could limit further improvements.”
What did industry chiefs say about the UK housing market outlook?
Jason Tebb, head of OnTheMarket, stated,
“Average prices are being held in check with buyers finding themselves in a strong position, which they are using to negotiate on price.”
Tomer Aboody, director of specialist lender MT Finance, said,
“We are seeing that despite plenty of negativity surrounding current market conditions, buyers are still transacting, although in smaller numbers than historically. Due to less demand, price growth is minimal but still positive.”
Babek Ismayil, CEO of home-buying platform OneDome, stated,
“Properties listed too optimistically risk stagnating, while buyers who have their finance lined up are in the strongest position to move quickly and negotiate firmly.”
Tom Bill, chair of UK residential research at Knight Frank, added,
“High levels of supply and a growing sense of uncertainty as November’s Budget approaches are both keeping downwards pressure on demand and prices.”
Iain McKenzie, chief executive of the Guild of Property Professionals, stated,
“Buyers motivated to complete before Christmas should act swiftly, as the window is narrowing.
He added,
“Looking ahead, sentiment will hinge on the interplay between inflation, monetary policy, and potential housing tax reforms in the autumn Budget.”
Karen Noye, a mortgage expert at wealth manager Quilter, stated,
“The market is still just grinding forward rather than racing ahead. Lower inflation and an improving real-income picture are helping confidence, but affordability remains the binding constraint and any progress is likely to be gradual.”
Matthew Thompson, head of sales at estate agent Chestertons, said,
“Uncertainty over potential tax changes is holding back activity but if the announcements bring clarity, confidence could return quickly and create an unusually busy end to the year.”
Nathan Emerson, CEO of property professionals’ body Propertymark, added,
“Construction activity in many regions has not kept pace with population growth and urban migration, exacerbating shortages, particularly in metropolitan areas. This supply constraint has intensified competition among buyers, placing upward pressure on prices.”
The latest average house prices across UK regions
The average house prices in Britain across different areas are as follows:
- Northern Ireland: £215,122, 9.6% annual growth
- North East: £169,216, 5.1%
- Yorkshire and the Humber: £214,359, 3.8%
- North West: £222,664, 3.2%
- West Midlands: £250,951, 3.0%
- Wales: £213,359, 3.0%
- Scotland: £189,863, 2.9%
- East Midlands: £238,702, 2.7%
- East Anglia: £273,945, 1.1%
- Outer Metropolitan (St Albans, Stevenage, Watford, Luton, Maidstone, Reading, Rochford, Rushmoor, Sevenoaks, Slough, Southend-on-Sea, Elmbridge, Epsom and Ewell, Guildford, Mole Valley, Reigate & Banstead, Runnymede, Spelthorne, Waverley, Woking, Tunbridge Wells, Windsor and Maidenhead, Wokingham): £428,405, 1.0%
- South West: £306,163, 0.9%
- London: £527,694, 0.6%
- Outer South East (Ashford, Basingstoke and Deane, Bedford, Braintree, Brighton and Hove, Canterbury, Colchester, Dover, Hastings, Lewes, Fareham, Isle of Wight, Maldon, Milton Keynes, New Forest, Oxford, Portsmouth, Southampton, Swale, Tendring, Thanet, Uttlesford, Winchester, Worthing): £337,201, 0.3%
UK government homes target
The government plans to construct 1.5 million new homes in England by August 2029. To meet this, nearly 370,000 new homes are needed per year.From 9 July 2024 to 14 September 2025, 231,300 net additional homes were delivered. This represents about 15% of the total target, showing the pace must increase.